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13 

September 1980 



CAMPAIGN FOR ECONOMIC DEMOCRACY: PART I 

THE NEW LEFT IN POLITICS 



(Executive summary) 

The Campaign for Economic Democracy is a California-based 
apparatus with national ties, particularly to organizations that 
function as parts of the nationwide network created and. maintained 
by the Institute for Policy Studies, "the far-left radical 'think 
tank 1 in Washington, O.C." CED evolved, directly from the unsuccess- 
ful 1976 California campaign of Thomas E. Hay den, one of the 
preeminent radical leaders .of the 1960s, for the United States 
Senate; and several of CEO's principal activists are also veterans 
of the Bayden. campaign and of Students for a Democratic Society, 
a. militantly leftist organization* in which Hayden played a pivotal 
role both as founder and as principal author of its basic manifesto, 
the "Port Huron Statement." with an estimated 8,000 members 
throughout the state of California and a claimed core of 400 
activists, CED operates' with a paid staff of 21 people, a steering 
committee of 40 members and 40 alternate members , and an executive 
committee of eight members; Hayden chairs both the steering and 
executive committees and has been chairman of CED since its 
inception. In March 1977, the' Campaign claimed, to have 15 chapters 
in California; the most recent estimate places the number at 30. 

Hayden 's ambitions are evident in his statement that "We're 
going to take over.... The next big generation will be those who 
came to political life during Vietnam, my generation. The country 
will be under our influence for a long time to come.." It is, in 
fact, widely felt that CED exists in large measure to serve as an 
instrumentality for the achievement of Hayden 's political goals; 
it is certainly true that his involvement and thinking have been 
central to CED's operation, just as the efforts of his wife, 
radical actress Jane Fonda, have been central to the organization's 
fund-raising programs. These programs, which support a budget 
currently estimated at $300,000 per annum, have included direct- 
mail appeals, "door-to-door soliciting, speaker's honorariums , 



benefit concerts, and many, many personal contributions," according 
to a 1978 letter circulated by CED over Hayden's signature. An 
October 1979 tour by Hayden and Fonda to some 52 cities across 
the United States was reportedly financed largely by speaking 
fees of as much as $5,000 per appearance. It is generally felt, 
however, that Fonda has accounted for the lion's share of the CED 
budget; an article in the leftist Mother Jones magazine reported 
that "Through direct contributions, film benefits, concerts and 
celebrity events arranged through her connections, Fonda finances 
the majority of CED's impressive budget." Fonda has also opened 
an exercise salon in Beverly Hills, California, according to one 
source, "to give CED... a new source of income." 

Other sources of support for CED include organizations 
interlocked with the leftist movement in general and with the 
Institute for Policy Studies in particular. In 1978, for example, 
CED received funds from the Youth Project which "enabled the San 
Diego chapter [of CED] to hire its first staff members." The 
Youth Project has also made grants to various subsidiaries of 
IPS. Funds for a series of major conferences in which CED has 
played significant roles have been provided by the Foundation for 
National Progress, publisher of Mother Jones and self -described 
as "formed in 1975 to carry out on the West Coast the charitable 
and educational activities of the Institute for Policy Studies . " 
Much of the basic research data for CED's solar energy campaign 
is contained in a lengthy study published by the California 
Public Policy Center, the leadership of which interlocks with 
both CED and IPS; CPPC also prepared and published a 150-page 
volume of Working Papers on Economic Democracy that was issued 
in conjunction with a CED-organized Second California Conference 
on Alternative Public Policy (also known as. the Santa Barbara 
Conference on Economic Democracy) held in Santa Barbara, California, 
during February 1977. 

CED has also reportedly benefited from funds provided through 
government grants to California groups employing CED-affiliated 
personnel. Specifically, Barron ' s has alleged that "Organizations 
with CED alliances. . .have found a place at the public trough via 
CETA or VISTA money." In Santa Monica, California, the Center 
for New Corporate Priorities, a group run by Ruth Yannatta Goldway, 
a member of the Santa Monica City Council elected with CED support, 
received $126,000 in CETA money reportedly used to place some 57 
CETA trainees with several community groups, most of them CED- 
oriented, the result being that the U.S. Department of Labor's 
Inspector General ' s. office has determined there is "prosecutive 
merit" in allegations that CETA funds have been used to subsidize 
CED-connected political activity. Other cases of alleged impropri- 
ety, reported extensively in the pages of the radical Berkeley 
Barb , have involved allegations that "the Hayden political machine" 
has 

* Channeled federal dollars from Western SUN (a 
federal solar energy project) into community action 
groups which are affiliated with Hayden's CED. At the 



same time legitimate solar groups that are not affiliated 
with CED are unable to obtain funding from Westen [sic] 
SUN. 

* Put CED members on the payroll of Western SUN. 
Positions in the federal program tend to be filled not 
on the basis of knowledge or ability in the field of 
solar power, but on the basis of classic political 
patronage . 

* Obtained federal funding from the CETA (Comprehen- 
sive Employment and Training Act) program to pay wages 

to CED members for doing work for CED. The taxpayer- 
funded work involved little more than political organiz- 
ing for the Hayden organization. 

* Used a Santa Monica crime control program called 
Communitas, which has a quarter million dollars in 
federal grants, to promote rent control and other 
political projects dear to CED's heart, but completely 
unconnected to crime control. 

CED's activities and programs flow from its fundamental 
tenet that what is needed is for the people "to name — and 
publicly challenge the foul thing" known as "Corporate Capitalism" 
that is allegedly "the source of our ills." These "ills" are 
characterized as "its racism and sexism and joblessness and wars 
and inflation and its sugar-coated poisonings of our minds and 
bodies." CED's efforts to combat this "stagnant thing in our 
midst" have included electoral politics, community organizing 
around such issues as rent control and "tenants' rights," and 
vigorous lobbying campaigns around such issues as solar energy 
and "progressive, tax reform." CED's solar energy proposal, 
SolarCal, was brought into being by California Governor Jerry 
Brown in 1978; Hayden was appointed by Brown to serve on the 
SolarCal council, in addition to being appointed by him to serve 
as a member of the Southwest Regional Border Commission. The., 
relationship between Brown and Hayden and Fonda is known to be a< 
close one, a fact which indicates a significant degree of accept- 
ance of CED's leadership among' elements of the political establish- 
ment in California. This is further indicated by the fact that 
CED numbers among its more prominent members and supporters such 
individuals as U.S. Representative Ronald V. Dellums., United Farm 
Workers leader Cesar Chavez, and former California Lieutenant 
Governor Mervyn Dymally. That CED has enjoyed some practical 
political success is also indicated by its claim of at least 17 
electoral victories in California; in addition, Governor Brown 
has appointed CED members to county supervisor positions in Santa 
Cruz and Orange County, according to one report. 

CED has also been involved in anti-nuclear agitation, in 
boycotts of Coors beer and J. P. Stevens products, in promotion of 
"state bank" legislation, in opposition to "expensive downtown 
'redevelopment' schemes" and "outrageous housing speculation," 



and in "the struggle to get the University of California to 
' dis-invest' the public's money from South Africa." A January 
1980 account indicated that, in the area of "tenants' rights," 
Cary Lowe, described as "a tenants' rights specialist for" CED, 
had been active in "attempting to form a national renters' lobby." 
And, in another program directly related to "community organizing, " 
CED maintains the Laurel Springs Educational Center at the 120-acre 
Laurel Springs Ranch north of Santa Barbara, California. Purchased 
in 1977 for a reported $500,000 (in Fonda's words, "a bank loan 
based on future film earnings"), this facility is used "to provide 
a site for the development of alternative sources of energy, such 
as solar and wind; waste removal and recycling systems; CED's 
Organizer Training Institute; and a children's summer camp." One 
source has quoted Hayden as saying that, in addition to training 
CED activists, "We might contract also with community or government 
agencies or unions. . .people who have staff to train." Programs 
at the Laurel Springs site purportedly help people increase their 
"skills in the fields of electoral campaigning and community 
organizing or learn more about the way our economic and political 
systems operate and what CED's alternatives are." Children 
attending the summer camp have reportedly been exposed to "such 
weighty issues as why farm workers should be unionized or why gas 
companies should not be allowed to construct a liquefied natural 
gas terminal on sacred Indian land along the California coast." 
Such subjects are doubtless part of what Fonda has called the 
"underlying content" of the camp's program, a fact which makes it 
of more than passing interest that "All contributions" to the 
Laurel Springs Educational Center "are tax-deductible." 

One of the more arresting aspects of CED activity was a 
meeting between Tom Hayden and President Carter in the Oval 
Office early in 1978. An account of this meeting, based on 
Hayden 's own notes and published in CED's newspaper in February 
1978, revealed that the only other person present was President 
Carter's adviser Peter Bourne, an early Carter supporter who has 
been active in such groups as Vietnam Veterans Against the War 
and the Institute for Southern Studies, an affiliate of IPS. 
Hayden' s account indicated that President Carter agreed with his 
assessment of the power wielded by "the heads of the giant multi- 
national corporations whom we do not elect and rarely see" and 
that the President told Hayden, "I'm proud to get to know you. 
I've followed your activities with interest, and I think you've 
made important contributions to our country." The President also 
reportedly told Hayden to "send our regards to Jane. We respect 
her very much." To put such effusions into proper perspective, 
it should be noted that this is the same Tom Hayden who has been 
quoted as saying that "Communism is one of the options that can 
improve people's lives" and that Jane Fonda's public utterances 
have included her statement that "we should strive toward a 
socialist society, — all the way to communism." 



CAMPAIGN FOR ECONOMIC DEMOCRACY: PART I 

INTRODUCTION 

The Campaign for Economic Democracy is a California-based 
apparatus with nationwide connections that operates as a direct 
outgrowth of the unsuccessful 1976 California campaign of Thomas 
E. Hayden for the United States Senate. An editorial by Hayden 
in the June-July 1977 issue of ced news , the Campaign's official 
publication, indicated that this effort actually began at some 
point during 1975; dated June 2, 1977, and captioned "June 1977: 
The Third Year Begins," this article opened by saying that "It's 
two years since the Hayden campaign officially began." After 
Hayden 's defeat in the primary; an organizing committee worked 
for several months to transform the campaign apparatus into a 
permanent vehicle for radical economic and political activism 
throughout the state under Hayden 's leadership. 

CED has a paid staff, a statewide steering committee, and an 
executive committee. Hayden has served as chairman of both the 
steering and executive committees and has been chairman of CED 
since its inception. It is widely felt that CED exists to a 
significant degree, if not primarily, to serve as an instrumental- 
ity for the furtherance of Hayden' s political ambitions, although 
it may be that this view is excessively simplistic; it is certain- 
ly true that many of those activists associated with Hayden and 
CED were also deeply involved in the 1976 campaign, but it is 
equally apparent, based on a review of the available evidence, 
that the organization's extensive network of interlocking relation- 
ships with other elements of the radical left across the country 
indicates a far larger and more long-term intent, an impression 
that is in no way vitiated by a statement recently attributed to 
Hayden by the press: "It's coming. We're going to take over.... 
The next big generation will be those who came to political life 
during Vietnam, my generation. The country will be under our 
influence for a long time to come. 1 '* In any event, it is obvious 
on its face that Hayden 's involvement and thinking are central to 
CED's success and have been from the beginning, an aspect of the 



*That this has already begun to come to pass is indicated in a previous 
Heritage Foundation study; see Institution Analysis No. 9, "The New Left in 
Government: From Protest to Policy-Making," November 1978. The Vietnam 
experience was, of course, basic to the development of the New Left in the 
United States and has created a mentality that has worked a profound alteration 
even in the nation's foreign policy establishment; this phenomenon is treated 
with great cogency in a remarkable article, "The Rise & Fall of the New Foreign- 
Policy Establishment," written by Carl Gershman and published in the July 1980 
issue of Commentary . It is not too much to say that Gershman 1 s article is 
essential to any realistic comprehension of the extent to which the left has 
managed to achieve institutionalized respectablity in the United States in 
recent years. 



organization that assumes added interest when it is realized that 
the person generally regarded as primarily responsible for CED ' s 
major fund-raising efforts is actress Jane Fonda, Hayden's wife 
of several years and an activist on the far left of American 
political life of no mean accomplishment in her own right. 

BUILDING A RADICAL COALITION 

According to an informative (and, it should be noted, highly 
critical) account provided by Justin Raimondo in "The CED Syndrome: 
The Politics of the New Class," published in the January 1980 
issue of The Libertarian Review , 

The Campaign for Economic Democracy was founded, 
by Hayden and Fonda, in 1977, after Hayden's defeat in 
his attempt to win John Tunney's Senate seat. The 
group is run by a steering committee elected from local 
chapters; no public convention has ever been held. 
Hayden claims that membership has doubled in two years, 
to a current total of 8000. Of these, approximately 
500 to 1000 are activists who can be depended on to 
come to weekly meetings, integrate CED work into daily 
life, and travel for the organization if necessary. 
Founding members include leftwing Congressman Ron 
Dellums, and Cesar Chavez. It has a budget of about 
$300,000 per year — raised mostly by Fonda and her 
Hollywood connections — and a paid staff of twenty-one. 
The superstructure of affiliated organizations are all 
tax exempt. The California Public Policy Center 
researches issues like rent control and solar energy. 
The Organizer Training Institute does exactly what it 
says it does. There is even a ranch in the hills 
overlooking Santa Barbara for staff retreats and a 
children's summer camp. 

A host of CED associates have been appointed by 
Governor [Jerry] Brown to various positions with the 
growing solar power bureaucracy; Hayden himself was 
appointed by Brown to the- State SolarCal Council, a CED 
idea that Brown championed as California's "soft techno- 
logy" answer to the energy crisis. Presidential candi- 
date Brown also made Hayden a "special counsel" to his 
administration, and appointed him to the Southwest 
Border Regional Commission. In recent months, Brown 
has appointed two CED members to county supervisor 
positions, one in Santa Cruz, and one in Orange County. 

But the measure of CED's initial success is more 
than the measure of Brown's trendy opportunism. Within 
the last 18 months, CED members and CED-backed initia- 
tives and candidates for public office have won elec- 
tions around the state; rural Yolo and Butte counties, 
Chico, Berkeley, Bakersfield, Santa Monica and Los 



Angeles are all scenes of CED victories. CED has been 
the backbone of the rent control movement in California, 
which Hayden initially saw as a losing issue, until the 
victory of Proposition 13 made landlords who did not 
pass along tax savings to renters an easy target. 

CED claims 17 electoral victories in California, 
so far -- and the Democratic Party leadership is running 
scared. Hayden 's recent tour is an indication that 
soon the panic will achieve national proportions. 
Already, a loose coalition is beginning to take shape 
around the country; Massachusetts Fair Share, ACORN, 
International Association of Machinists' president 
William winpisinger with the Citizens/Labor Energy 
Coalition, the Progressive Alliance headed by UAW's 
Douglas Fraser, as well as Michael Harrington's DSOC 
[Democratic Socialist Organizing Committee] and groups 
like the New American Movement, all share a somewhat 
common political perspective. All are committed to 
working within the confines of the Democratic Party — 
and, in the final analysis, the confines of State 
Capitalism — in order to hold their own against the 
anti-bureaucratic tidal wave which is sweeping the 
country. 

In his June- July 1977 ced news editorial, Hayden wrote that 
"We've laid the foundation for a coalition of progressive leaders, 
activists, and organizations" and added that "We've introduced a 
new concept and program — economic democracy — for progressive 
people to rally around. With SolarCal, we are on the way to our 
first legislative struggle with a chance of success." The final 
paragraphs of this article provide the reader with an indication 
of both the basic radicalism and the political ambition of Hayden 's 
and CED's program [emphasis as in original]: 

We've scored some strategic victories. The election 
of Ben Tom gave us a base in San Francisco politics 
where many progressive triumphs are possible in the 
future . Karl Ory ' s election in Chico means an early 
foothold in one of the fastest-growing areas of Califor- 
nia. The victories of Lionel Wilson, John George and 
others in Oakland is a great step for coalition politics 
with the Black community. 

We've become a real challenge to the establishment, 
from the Bank of America to the comfortable liberals in 
power. We are realigning California politics ,' giving a 
voice to at least one million voters. The [Mel] Levines 
and [John] Tunneys, liberals of yesterday, are fast 
becoming the conservative wing of the Democratic Party. 

And we're attending to the internal problems of 
political education and organizational structure vital 
to any long-term movement. Our children's camp is a 
statement of faith in our future. 



The challenge we represent to established power — 
liberal or conservative — was best described to me by 
a union leader recently. I asked him why so many of 
his union friends are bothered by us. " They don't know 
how to deal with you , " he answered. "Lf you represen - 
ted only power , they could make a deal with you . If 
you represented only ideology , they could take it or 
leave it . But you represent both power and ideology , 
and they can't control it . " 

What both the Libertarian Review assessment and Hayden ' s own 
1977 editorial have in common~is, of course, the emphasis on. 
political power, what is often somewhat colloquially called 
"clout." In the 1960s and early 1970s, radicals of varying hues 
coalesced, largely under Communist influence,* in mass demonstra- 
tions which frequently had as rallying cries a variety of slogans 
about the need to bring down the "system." Now, as the nation 
moves into the 1980s, many of these Vietnam-era radicals have 
elected to become a part of the same system, their aim being to 
use the nation's political machinery to effect their goals from a. 
base of political power on the inside of the very system they 
were challenging in the streets just a few short years ago. 
It is this development that gives CED a significance it might not 
otherwise enjoy. 

MEETING WITH PRESIDENT CARTER 

This is illustrated dramatically by a "Dear Friend" letter 
circulated over Hayden 's signature by CED in 1978. In this 
undated, letter, Hayden called attention to "a startling revelation" 
during his meeting with President Jimmy Carter "several weeks 
ago" in. the Oval Office: 

Jimmy Carter ' s first question to me was whether I 
was "satisfied" at seeing so many once controversial 
ideas finally being carried out as national policy. 
The radicalism of the 60s, he seemed to imply, was 
becoming the common sense of the 70s. 

His question reminded me of something which Norman 
Thomas once said when asked if his ideas had been 
carried out by the New Deal. "Yes", the old social 
crusader answered, "they were carried out — but in a 
coffin." 

So I'm not satisfied, I told the President. The 
federal budget, I said, expands the Pentagon's war 



*For a review of this influence as it developed in the anti-Vietnam war 
movement, see Heritage Foundation Institution Analysis No. 11 , "The Anti-Defense 
Lobby: Part II, 'The Peace Movement, Continued," 1 September 1979. 



chest while doing nothing new for our ailing cities; 
increases a dangerous commitment to nuclear power 
plants over solar energy; seems to blandly accept 
massive unemployment, particularly among youth, combined 
with permanent inflation in the cost of the basic 
necessities of life. 

The greatest issue, I continued,- is a lack of 
power to do anything about these crises. Then followed 
this exchange. 

" Even you , the elected President of the United 
States , really have less power then the heads of the 
giant multinational corporations whom we do not elect 
and rarely see . " 

"I, believe that's true ." He told me. " I ' ve 
learned that these past twelve months [emphasis, capital- 
ization, and punctuation as in original ] . " 

Hayden's conclusion was hardly surprising: 

That's a pretty blunt — and authoritative — admission 
about the state of our democracy. And it proves once 
again that we can't leave our future to any single 
elected leader no matter how "honest" or "decent" or 
"competent." 

The only force strong enough to offset the power 
of Big Money is that of a determined, positive and 
effective citizen's movement. 

The importance of such a meeting between the President of 
the United States and one of the most prominent radical leaders 
of the 1960s should not be underestimated. Such an audience 
must, by its very nature, work to confer a degree of legitimacy 
and acceptance that otherwise might never be attained. As Hayden 
boasted at the outset of his letter, 

Ten years ago when I' was demonstrating outside the 
White House gates against the Vietnam War, I would not 
have believed that this year I would be sitting in the 
Oval Office arguing national priorities with the Presi- 
dent . And I doubt that Jimmy Carter ' s aides expected 
to be scurrying around Washington trying to find a copy 
of the Port Huron Statement, the manifesto of the 
1960 's student movement, for the President to study 
before our meeting. 

Indeed. Such a meeting renders quite credible Hayden's 
earlier-quoted claims that "We're going to take over" and that 
"The country will be under our influence for a long time to 
come." It is noteworthy that Hayden's 1978 "Dear Friend" letter 
included four photographs on. its first page, two of them of 



Hayden with California Governor Jerry Brown and another of Hayden 
talking with President Carter. Both indicate plainly that Hayden 
has achieved a remarkable degree of acceptance since the period 
when he was "demonstrating outside the White House gates." And 
it is probably fair to speculate that this metamorphosis, especial- 
ly when viewed in conjunction with the steady movement of other 
former movement types into responsible government positions at 
the national, state, and local levels, may well be the most 
important political development of the early 1980s. 

A lengthy account of the Hayden-Carter meeting was published 
in the February 1978 issue of CEP NEWS . Based on Hayden *s notes 
of the session, this account begins by citing the fact that 
Hayden was in Washington pursuant to his appointment "by Governor 
Brown as a California delegate to the White House Conference on 
Balanced National Growth and Economic Development." After the 
ritual press photographs were taken, Hayden and Carter began 
their meeting: "We were alone, and sat down in two comfortable 
chairs by the fireplace. Peter Bourne joined us." As noted by 
Hayden, Bourne "is an activist with historic ties to veterans and 
anti-war groups. Along with his wife, former civil rights activist 
Mary King, he was one of the earliest Carter supporters." Accord- 
ing to Hayden, it -was Bourne who had "spent most of the week 
ordering White House staff to locate the 'Port Huron Statement', 
founding manifesto of the 1960 's student movement, so that the 
President could better brief himself for our meeting." The 
significance of Bourne ' s being the only other person in the Oval 
Office with Hayden and President Carter may be seen from the fact 
that his background in "veterans and anti-war groups" includes 
active affiliation with both Vietnam Veterans Against the War, 
part of the Communist-dominated Peoples Coalition for Peace and 
Justice, and the Institute for Southern Studies, a subsidiary of 
the Institute for Policy Studies, described in the 1971 annual 
report of the House Committee on Internal Security as "the far- 
left radical 'think tank 1 in Washington, D.C."* 

THOMAS E. HAYDEN 

According to Hayden 's notes, President Carter began the 
meeting by saying to Hayden, "I'm proud to get to know you. I've 
followed your activities with interest, and I think you've made 
important contributions to our country." Such an encomium deserves 
to be put into proper perspective, which is easily accomplished 
by quoting the following biographical sketch contained in a study 
circulated by a government agency in 1969: 

Hayden was born December 11, 1939, at Detroit, 
Michigan. He received an A.B. degree in English from 



"Both Bourne and King are discussed in Heritage Foundation Institution 
Analysis No. 9, "The New Left in Government: From Protest to Policy-Making," 
November L978. 



the University of Michigan on June 17, 1961. He attended 
the University of M-Jhigan's School of Graduate Studies 
from September, 1962, until May, 1964. While a student 
at the University, he was active in the civil rights 
movement in Georgia and Mississippi. 

Hayden was one of the original organizers of the 
SDS [Students for a Democratic Society] in 1962 and one 
of its first National Presidents. He was the principal 
author of the "Port Huron Statement" that formed the 
ideological structure of the organization. 

Hayden has traveled extensively in connection with 
his rebellion against U.S. policy at home and abroad. 
In late December, 1965, and January, 1966, he traveled 
to Prague, Moscow, Peking, and North Vietnam. He was 
one of 41 Americans who took part in a week-long confer- 
ence in Bratislava, Czechoslovakia, in September, 1967, 
with North Vietnamese and Viet Cong representatives. 
He was one of seven Americans who visited North Vietnam 
in the Fall of 1967 and returned with three American 
soldiers who had been prisoners of the North Vietnamese. 
He was in Cuba for the Cultural Congress of Havana in 
January, 1968, at which the United States was condemned 
for its "role of worldwide imperialist aggressor" and 
support was pledged to the Vietnamese people in their 
struggle against the United States. In July, 1968, 
Hayden was in France, where he conferred with North 
Vietnamese leaders. 

Hayden was arrested during the Columbia University 
riots in May, 1968. That same month, he quit his 
position as Associate Editor of "Liberation" magazine 
in New York and went to Chicago to work with the National 
Mobilization Committee to End the War in Vietnam [succes- 
sor to the Spring Mobilization Committee to End the War 
in Vietnam and immediate predecessor to the New Mobili- 
zation Committee to End the War in Vietnam, both offi- 
cially cited as Communist-dominated] . Hayden was 
arrested in connection with disturbances at the Democra- 
tic National Convention in Chicago in August, 1968. In 
early January, 1969, he began a series of lectures at 
the University of California at Berkeley on "The New 
American Revolution . " 

Hayden has spent his entire adult life vehemently 
denouncing the "sinking and decaying" structure of 
American society. 

Hayden 's close relationship to, and identification with, the 
cause of the North Vietnamese Communists against the United 
States may be seen in vivid form in the following letter addressed 
by him to a North Vietnamese official, Colonel Ha Van Lau (mis- 
spelled "Lao" in the salutation): 



8 



• June 4, 1968 

Dear Col. Lao: 

This note is to iritroduce to you Mr. Robert Greenblatt, 
the coordinator of the National Mobilization [Committee] 
to End the War in Vietnam. He works closely with 
myself and Dave Dellinger, and has just returned from 
Hanoi . 

If there are any pressing questions you wish to discuss, 
Mr. Greenblatt will be in Paris for a few days. 

We hope that the current Paris discussions go well for 
you. The news from South Vietnam seems very good 
indeed. 

We hope to see you this summer in Paris or at a later 
time. 

Good fortune! 
Victory ! 

/s/ Tom Hayden 

Tom Hayden 

This essentially pro-Hanoi and anti-United States point of 
view was mirrored again as the Vietnam war was ending. According 
to an article in the April 18, 1975, edition of the New York 
Times describing a meeting at the Hayden- Fonda home, "They have 
watched the television scenes of refugee flight and death with 
dismay, but not surprise. They place the blame not on advancing 
Vietnamese Communist forces, but on American policy." The article 
quoted Hayden as seeing "this as a result of something we've been 
working toward a long time . Indochina has not . fallen — it has 
risen. What has fallen is the whole cold war establishment." 
Hayden also reportedly said he hoped the United States would 
abandon its "knee jerk acceptance of right wing dictatorships" in 
favor of a recognition that "Communism is one of the options that 
can improve people ' s lives . " 

Another aspect of Hayden 's background that is of some interest 
is his attitude at various times toward so-called ghetto violence. 
His volume Rebellion in Newark ; Official Violence and Ghetto 
Response , published in 1967 after the violent riots in Newark, 
New Jersey, included the following discussion: 

The role of organized violence is now being care- 
fully considered. During a riot, for instance, a 
conscious guerrilla can participate in pulling police 
away from the path of people engaged in attacking 
stores. He can create disorder in new areas the police 
think are secure. He can carry the torch, if not all 



the people, to white neighborhoods and downtown business 
districts. If necessary, he can successfully shoot to 
kill. 

The guerrilla can employ violence effectively 
during times of apparent "peace," too. He can attack, 
in the suburbs or slums, with paint or bullets, symbols 
of racial oppression. He can get away with it. If he 
can force the oppressive power to be passive and defen- 
sive at the point where it is administered — by the 
caseworker, landlord, storeowner, or policeman — he 
can build people ' s confidence in their ability to 
demand change. Persistent, accurately- aimed attacks, 
which need not be on human life to be effective, might 
disrupt the administration of the ghetto to a crisis 
point where a new system would have to be considered. 

These tactics of disorder will be defined by the 
authorities as criminal anarchy. But it may be that 
disruption will create possibilities of meaningful 
change. This depends on whether the leaders of ghetto 
struggles can be more successful in building strong 
organization than they have been so far. Violence can 
contribute to shattering the status quo, but only 
politics and organization can transform it. . . . 

When asked about this during an appearance before the House 
Committee on Un-American Activities on December 3, 1968, Hayden 
responded: 

Now I think that that is a clear statement. It is 
my own view, as much today as it was when I wrote the 
book.:- I think that what has happened in American 
ghettos since the book was written indicates that the 
book was accurate in predicting what would happen. If 
you look at any daily paper, you see that violence is 
breaking out in the urban areas, wherever people have 
no organized opportunities for democratic participation 
in resolving their problems, period. 

And I think that under those conditions, violence 
is ofttimes defensible. 

Another indication appeared in an article published in the 
December 17, 1967, edition of the New York Times with reference 
to a December 15, 1967, meeting in New York City at. which Hayden 
reportedly "made an impassioned defense of rioters in the Newark 
racial outbursts last summer and of those who advocate revolution- 
ary action in the peace movement." This account reflects that 
Hayden stated "a case can be made for violence in the peace 
movement" and that he elaborated on this by saying, "It's not as 
if violence in the slums and in Vietnam appeared in a vaccuum 
[sic]. It came only after the failure of democratic methods. 
When I participate in violence it was [sic] out of that failure — 
not as an expression of psychological self-hatred." 



10 



HAYDEN-CARTER MEETING, CONTINUED 

Hayden's notes indicate an extraordinarily cordial atmosphere 
during the Oval Office meeting, with President Carter apparently 
sharing his view of how ideas regarded at one point as radical 
very often become standard doctrine with the passage of time: 
"It seems to be a pattern that a reform candidate proposes an 
idea in one year... and loses, but the idea, particularly if it's 
a sound one, is picked up by the opponent and in a few years 
becomes the nation's policy." Interestingly, during a discussion 
of what it is like to campaign "while being laughed at" as a 
relative unknown or newcomer to politics, President Carter provided 
indications of just how important a role Bourne and King had 
played in his behalf: 

Well, we didn't mind the scorn that much. We had 
a strategy worked out. Peter [Bourne] here had written 
a long- letter urging me to run years ago, and Hamilton 
Jordan, had. framed a plan for the primaries. In Iowa, I 
visited 110 towns and cities, and Rosalyn [sic] must 
have gone to 70 or so by herself. In those places, I 
was taken, seriously. I was introduced as a former 
governor, after all, and the first presidential candidate 
they had seen. It didn't matter what the rest of the 
press was saying. When our plan worked, and we won 
that primary, then we had to be taken more seriously. 
And it just kept going that way. We were lucky, too. 
Then after the nomination and after all the primaries, 
they suddenly began asking me about the Middle East, 
Salt [sic] talks, health care. It changed. It was 
great. But anyway, it was true, we were considered 
crazy for trying. I used to stay with Peter and Mary 
[Mary King is now deputy director of Action] here in 
Washington after they had moved from Atlanta. They 
were about the only people who thought we could win. 

Hayden had come to the White House armed with "several 
working papers on economic and energy issues" for the President's 
consideration, as well as a desire "to open a dialogue with you 
about the issues we are working on. " President Carter replied 
"That would be fine" to Hayden's statement that "we would like 
our economic democracy alternative considered as a legitimate 
part of the national debate, and we would like a way to plug our 
ideas, suggestions and criticisms into this office." Hayden also 
expressed appreciation for "your stands on some controversial 
California issues - the B-l Bomber, the land issue in the San 
Joaquin Valley, opposing the Auburn Dam, providing funds for the 
United Farm Workers" while, at the same time, voicing sharp 
criticism of the federal budget, which he saw as reflecting "all 
the wrong priorities. The cities are neglected while the military 
budget rises. It aims at getting the confidence of the businessmen 
who didn't vote for you but not the confidence of the poor, the 
minorities - those who suffer most." Eschewing any desire to 
criticize by "personalizing or letting politics enter" any possible 



11 



dispute, Hayden instead avowed an interest "in joining the debate 
on what the national priorities should be, on the need for a 
solar energy and conservation emphasis, on the larger question of 
corporate accountability." These, he argued, "are going to be 
the great problems of the future." 

The meeting concluded with President Carter saying, "Let's 
remain in contact, and 'I'll appreciate ypur [sic] views. And 
send our regards to Jane [Fonda, Hayden 's wife]. We respect her 
very much. And please come and see us here again." Carter also 
reemphasized his admiration for Hayden: "Again, I'm proud to 
have met you . " 

JANE FONDA 

Like his effusion with respect to Hayden, President Carter's 
expression of "respect" for Jane Fonda merits an attempt to place 
it in proper perspective. This is because, as mentioned at the 
beginning of the present study, she has apparently provided the 
major financial support for CED and because she has emerged over 
the years as a formidable radical activist in her own right. 

Fonda's support for such groups as the violence-oriented 
Black Panther Party is a well-known matter of public record, as 
is her equally vehement support for the cause of Hanoi during the 
war in Vietnam. In a biography of Jane Fonda published in 1973, 
Thomas Kiernan stated that Fonda had become involved with support 
for radical Indians and Black Panthers and that 

While Jane was in the process of learning about the 
Indians and Black Panthers, she attended a party given 
in Hollywood for [Italian motion picture director 
Michelangelo] Antonioni [described by Kiernan as "an 
Italian Communist"]. There she met Fred Gardner, the 
attractive, persuasive, deadly serious Marxist who had 
started the GI movement, had written a book about the 
Presidio mutiny and was currently president of the 
United States Servicemen's Fund. Out of that meeting 
came the real beginning of a whole new life for Jane 
Fonda . 

Another mentor was to be Mark Lane, well-known radical 
attorney who, in addition to his notoriety as a purveyor of 
conspiracy theories, has a background that includes active member- 
ship in the National Lawyers Guild, cited as the "legal bulwark 
of the Communist Party, its front organizations, and controlled 
unions" which "since its inception has never failed to rally to 
the legal defense of the Communist Party and individual members 
thereof, including known espionage- agents." That such association 
had its impact on her views is apparent from her April 1971 
sponsorship of an organization known as the Wilfred Burchett 
Sixtieth Birthday Committee, Burchett being an Australian Communist 
reporter who has been identified in sworn testimony as an agent 



12 



of the KGB. There have also been allegations that Burchett 
participated in the "interrogation" of American soldiers held by 
the Communists during the Korean War. 

Fonda's best- known activities, however, have undoubtedly 
been in conjunction with her extreme opposition to United States 
policy in Vietnam, an opposition that led her to express the most 
blatant support for the Communist side. On November 22, 1969, 
for example, in a speech at Michigan State University, she charac- 
terized the Viet Cong as "driven by the. same spirit that drove 
Washington and Jefferson" and hailed them as "the conscience of 
the world." In a 1971 speech at the University of Texas, she 
exulted over the growing resistance to U.S. policy within the. 
military, claiming that "No order is accepted unchallenged" and 
adding that "We should be very proud of our new breed of soldier. 
They are not even performing the basic functions of a soldier. 
It's not organized but it's mutiny, and they have every right." 
And in a speech broadcast by Radio Hanoi on July 26, 1972, the 
following paragraphs were especially revealing: 

This is Jane Fonda in Hanoi. I am very honored to be a 
guest in your country, and I loudly condemn the crimes 
that have been committed by the U.S. Government in the 
name of the American people against your country. 

A growing number of people in the United States not 
only demand an end to the war, an end to the bombing, a 
withdrawal of all — all U.S. troops and an end to the 
support of the Thieu clique, but we indentify [sic] 
with the struggle of your people. We have understood 
that we have a common enemy — U.S. imperialism. We 
have understood that we have a common struggle and that 
your victory will be the victory of the American people 
and all peace-loving people around the world. Your 
struggle and your courage in the face of the most 
unbelievable hardships has inspired all of us in the 
deepest part of our hearts. We follow very closely the 
crimes that are being committed against you by the 
Thieu regime; the people, the brave people who are 
speaking out for peace and independence, who are being 
put away into prisons, in the — in the tiger cages. 

Another statement by Fonda, published as part of an interview 
with her and her husband Tom Hayden in the April 1974 issue of 
Playboy magazine, was equally instructive: 

I'm very weary of the thinking that says there are 
two sides to every question. There aren't. .. .The 
question shouldn't be whether or not the North Vietnamese 
or the Provisional Revolutionary Government commits 
atrocities in the course of the war. The real question 
is: Who is ultimately responsible for the war? For 
those who don't already know the answer, I suggest they 
read the Pentagon Papers, which reveal that the United 



13 



States has always been the aggressor in Vietnam [empha- 
sis in original] .... 

The motivation for such statements is indicated in a number 
of Fonda's public utterances over the years. Although her father, 
actor Henry Fonda, has been quoted as arguing that "she's never 
been a Communist or a Socialist," Jane Fonda's public speeches 
and interviews are replete with evidence that, philosophically at 
least, the opposite appears to be the case. In her November 1969 
Michigan State University speech, for instance, she said, "I 
would think that if you understood what communism was, you would 
hope, you would pray on your knees that we would someday become 
communist." In the same speech, she avowed that socialism is "a 
good message, and the more people give it, the better." Similar- 
ly, in a December 11, 1970, speech at Duke University, Fonda 
reiterated her views by stating that "I would think that if you 
understood what communism was, you would hope and pray on your 
knees that we would someday be communist" and adding, "I am a 
socialist, I think that we should strive toward a socialist 
society, — all the way to communism [punctuation as in original]." 

Closely related to her acceptance of socialism and communism 
is Fonda's stated position on the need for revolution. The July 
12, 1970, issue of the Cuban Communist newspaper Granma reportedly 
quoted her as saying that "Revolution is a natural and necessary 
part of life; it is an act of love." In like manner, the July 
18, 1970, issue of the People ' s World , west coast newspaper of 
the Communist Party, U.S.A., carried extended passages from a 
telephone interview granted by Fonda to another Cuban Communist 
newspaper, Juventud Rebel de , during which she reportedly said 
that "To make the revolution in the United States is a slow day 
by day job that requires patience and discipline. It is the only 
way to make it. " She was further quoted in this account as 
saying that, although she is "one of the people who benefit from 
a capitalist society, I find that any system which exploits other 
people cannot and should not exist." To Fonda, "the system is 
corrupt from the bottom up" and "is at fault and is the problem." 
To deal with the nation's difficulties, according to Fonda, one 
must attack this "corrupt" system: "While nothing is done against 
the imperialist system, all the rest will be artificial." The 
relative hardness of her views as of that time was indicated in a 
statement published in the December 11, 1971, edition of the 
Dallas Morning News : 

We've got to establish a socialistic economic 
structure that will limit private, profit-oriented 
businesses. .. .Whether the transition is peaceful depends 
on the way our present governmental leaders react. We 
must commit our lives to this transition. We can't bow 
to intimidation because we ' ve come too far .... 

Despite Kiernan's statement indicating a conversion to 
active radicalism because of exposure to the likes of Fred Gardner, 
a statement generally supported by indications provided by Fonda 



14 



herself in her Juventud Rebelde interview as reported by the 
People ' s World , another source indicates a possibly somewhat 
earlier reason. The February 1971 issue of McCall ' s magazine 
carried an interview with Fonda conducted by Italian journalist 
Oriana Fallaci in which Fonda was quoted as follows: 

Four years ago I went to Russia. Inspite of my liberal 
background, I had been a victim of American propaganda. 
Somehow the idea of the Communists as enemies had been 
drilled into my mind. So I expected Russians to be 
strange people, and I saw such beautiful people instead! 
So much less aggressive than Americans! I was there 
for the First of May, and all through the military 
glorification of tanks and missiles, people were carry- 
ing peace banners and huge paper flowers and singing, 
"Peace, we want peace, no more war." And there was a 
smell of freedom and gaiety in their streets. There 
was not the tension that you see in Western cities .... 

Whether such a statement indicates a predisposition toward 
communism or merely a degree of naivete that is almost staggering 
in its dimensions is, of course, doubtless a matter for individual 
interpretation; it is certainly true, however, that relatively 
few objective visitors have ever detected the strong scent of 
freedom in the streets of the Soviet Union. It is perhaps hardly 
surprising that Jane Fonda evolved in her radical views to the 
point that, in a June 1971 speech in Los Angeles, California, at 
a meeting of Entertainment Industry for Peace & Justice, an 
allegedly anti-war group which she served as a member of its 
steering committee, she was moved to declare that "What is needed 
is victory for the Viet Cong." 

The record of Jane Fonda's activities, like that of her 
husband Tom Hayden, has been dealt with at such length because, 
as indicated above, Hayden and Fonda, in a very real sense, 
appear to be the Campaign for Economic Democracy. They are 
certainly its most visible and well-known activists; and, while 
it is true that any organization depends for its growth and 
success on the participation of committed people at all levels, 
one is entitled to wonder how well CED would have done without 
either or both of these movement celebrities who seem to enjoy 
such a remarkable coincidence of views. In this connection, one 
final quote from Fonda is revealing, reflecting as it does the 
view attributed to Hayden with respect to the coming influence of 
the Vietnam generation on American politics; it is taken from a 
book by Barbara Zheutlin and David Talbot, Creative Differences : 
Profiles of Hollywood Dissidents , published in 1978' by the South 
End Press in Boston, Massachusetts: 

It's now possible for people who represent the politics 
of the sixties movements to begin to take political 
power. We're not interested in being protestors [sic] 
for the rest of our lives. We're talking about sponsor- 
ing legislation. And we're talking about making progres- 
sive movies, because it's important to build a progressive 



15 



culture and to open people ' s minds . Ultimately we must 
concern ourselves with pulling out by its roots the 
decadence that controls our culture, the profit motive 
that controls our culture . But you can 't do. that 
unless you have power. 

MISCELLANEOUS ACTIVITIES AND PROGRAMS 

From its inception in 1977, CED has projected an ambitious 
program of political activism built around a variety of issues. 
"Vol I number 1" of an early CED newspaper, The Campaigner for 
Economic Democracy , dated March 1977, characterized the organiza- 
tion as "an 'organization of organizers' consisting of local 
activists involved in electoral politics and community organizing. 
A "Campaigner's corner" column in the same source outlined the 
range of "top state-wide priorities for campaigners for Economic 
Democracy" as of that time: 

SOS ... Support Our Sheriff, Richard Hongisto, of 
San Francisco, sentenced to jail for refusing to evict 
elderly Asian tenants from the International Hotel. 
Hongisto is appealing the sentence, result of a lawsuit 
brought by the powerful real estate lobby and a judgement 
by unrepresentative, isolated judges. Laurie Bodendorfer, 
CED San Francisco activist, is coordinating the effort. . . 

CHAIN. . .The California Housing Action and Informa- 
tion Network, a new statewide coalition to fight for 
housing rights for tenants as well as homeowners, 
recently kicked off with a well-attended, all-day 
conference in Los Angeles. CHAIN held 2 regional 
organizing meetings in San Diego and San Francisco in 
mid-March, and is now working against efforts to outlaw 
local rent control ordinances, and for bills to force 
landlords to pay interest to tenants of more low-cost 
housing. Cary Lowe, co-director of the California 
Public Policy Center, is also interim coordinator of 
CHAIN. CED forces are active in CHAIN and related 
efforts, like the attempt' to pass the Berkeley Rent 
Control Initiative this June... 

ISSUES TASK FORCES... Jim Gonzales, CED Steering 
Committee member, reports that the Education Task 
Force, formed at the Santa Barbara conference, has 
already blocked a bill to exempt Fresno from implement- 
ing the law on bi-lingual, bi-cultural education. Task 
Force members met with San Francisco Assembly member 
Art Agnos, who succeed[ed] in "pushing over" the bill 
and thus effectively killing it. Task Force members 
have also joined with other CED groups around the state 
fighting the Bakke decision, which reverses major 
affirmative action gains of the past decade... 



16 



ENERGY... CED forces have been a major voice in the 
need for greater tanker safety, with Organizing Committee 
member Tom Hayden testifying on a half-dozen occasions 
in Los Angeles. Hayden and CED mainstay Jan Jones 
spoke at a huge rally in San Pedro after the' Sansinena 
tanker explosion organized primarily by the Jim Stanbery 
for City Council organization. CED forces have also 
been actively protesting the attempt to build a SOHIO 
oil terminus in Long Beach, DOW and ARCO petrochemical 
plant near the Suisan March, and Southern California 
Gas LNG plant in L.A. Harbor. Tom Hayden recently 
released a letter questioning Energy Commission member 
Alan Pasternack for his reported strategems in closed 
meetings to foist nuclear energy on the public. 

TAXES... CED forces continue to push for basic tax 
reform, supporting the growing movement around the 
Petris Bill in the State Senate which would make basic 
structural reforms in the state tax system for the 
first time in recent memory. CED groups around the 
state are also active on the property tax issue, with 
CED San Fernando Valley forces particularly active in 
Los Angeles tax reform. Several CED chapters went to 
Sacramento to lobby for the Petris Bill in an action 
called by the Services Employees International Union 
(SEIU)... 

J. P. STEVENS ... CED has joined the nation-wide 
struggle to force J. P. Stevens, one of the most notori- 
ous anti-union companies in the nation, to comply with 
the National Labor Relations Act. Supporting the 
Amalgamated Clothing Workers, CED forces are organizing 
in California to stop the state from purchasing .Stevens 
products . 

FARMWORKERS . . . CED forces support the UFW in attack- 
ing ALRB general counsel, Harry Delizonna, for ordering 
arrests of farmworkers in Calexico. The ALRB needs 
public pressure to move faster on union grievances and 
to certify elections ... 

COMMUNITY CONTROL ... CED forces are preparing a 
major battle this June in San Francisco, as business 
and reactionary forces unite to try and recall Prop T. 
Progressive groups, including CED members, succeded 
[sic] in passing Prop T last November, which mandated 
district elections of Supervisors, thus making them 
accountable to the neighborhoods for the first time . . . 

CANDIDATES. . .Ruth Yannatta, consumer advocate 
running on an anti-corporate platform for a Santa 
Monica-West L.A. Assembly seat, has the strong backing 
of local CED forces. Yannatta 's already healthy chances 
recently improved dramatically when an expected major 



17 



opponent dropped out. Her best- financed opponent now 
was [sic] a member of John Tunney's Executive Committee... 
Barbara Filner, CED mainstay in San Diego, is campaign 
manager for Yvonne Schultz a community activist who was 
narrowly defeated for City Council last time out. . .Burt 
Wilson, co-director of CAUSE, one of California's major 
consumer groups, is waging a strong fight to succeed 
Charles Warren, recently named as Council on Environmen- 
tal Quality head, in the 46th A.D. in Los Angeles. 
Wilson, strongly supported by local CED forces, led the 
fight to defeat the ARCO "advance payments" scheme and 
various telephone rate increases, is an advocate of 
public control of utilities and a state bank. . . 

Up north, CED forces have mobilized around the 
campaign of black Judge Lionel Wilson for Mayor of 
Oakland, and Jane Fonda has organized a fund-raiser for 
Wilson, with O.J. Simpson, Roosevelt Grier, Willie 
Brown, and Mervyn Dymally at Redd Foxx's house... CED 
forces in Berkeley are also working for a progressive 
slate in the upcoming Berkeley -City Council elections, 
as well as on the rent-control initiative... 

Congratulations to Karl Ory, recently elected to 
the Chico City Council, who was supported by local CED 
activists and Tom Hayden, who campaigned for him in 
Chico . . . Short-term regrets , high long-term expectations 
for Manuel Gomez, who was narrowly defeated for the 
Santa Ana School Board in early March. Gomez, who 
stands a good chance next time out, was strongly suppor- 
ted by Orange County CED members, who brought in CED 
activists from San Diego to campaign for Gomez the last 
weekend before election day [punctuation as in original] . . . 

The June- July 1977 issue of ced news , headlined "SPECIAL 
ELECTION ISSUE," reflected a similarly varied program geared to^ a 
selection of issues with obvious appeal to radical activists. 
Included was material related to boycotts of Coors beer and J. P. 
Stevens products; an attack on California State Assembly member 
Mel Levine as a tool of "California's most influential corporate 
cliques"; a hostile assessment of CED purportedly prepared by "a 
Senior Public Affairs Analyst for the Bank of America" and "passed 
on to CED by a source within the Bank"; discussions of two unsuc- 
cessful CED-backed campaigns for seats in the California State 
Assembly, one by Burt Wilson of Los Angeles and another by Ruth 
Yannatta, also in Los Angeles, Yannatta's involving "over 150 CED 
activists from throughout the state" and expenditures of $100,000; 
and CED support for so-called "nonviolent direct action" against 
a California nuclear facility: 

Direct action in California will be coordinated by 
the Abalone Alliance. On June 12, CED's Steering 
Committee voted to endorse the nonviolent direct action 
program of the Abalone Alliance against the reactors at 



18 



Diablo Valley. Two members of the Steering Committee, 
Chuck Carlson of Ben Lomond and Jan Smutney Jones of 
Long Beach, will meet with the leaders of the Abalone 
Alliance to work out the details of CED's participation 
in the overall direct action program in California and 
particularly in the planned occupation at Diablo on 
Hiroshima Day in August. 

Participation in such anti-nuclear energy activites has been 
pursuant to CED's policy of opposing nuclear facilities and 
promoting development of what it calls "a state-owned solar 
industry." The ced news article which revealed the organization's 
support for the Abalone Alliance also described CED's three-part 
"strategy in dealing with the Carter/Schlesinger energy program:" 

1) support the groups that want to force an early 
confrontation between the nuclear industry and the 
"unwilling" residents of the state, 2) participate in 
regulatory and legislative activities to encourage a 
real policy of energy conservation, and 3) take the 
leadership in the state in the development of a state- 
owned solar industry. 

The June- July 1977 ced news also carried a "CAPITAL REPORT" 
written by one Patti Lightstone, characterized as a "CED lobbyist." 
This account indicated particular CED concern with three legisla- 
tive measures before the California State Assembly: legislation 
on farmworker housing, a bill restoring the death penalty, and a 
proposal "for tax reform and meaningful property tax relief." 
Lightstone' s discussion of the tax relief measure is interesting 
largely for its criticism of California Governor Jerry Brown, who 
has enjoyed considerable support from Hay den, Fonda, and the CED 
apparatus in recent years. As of publication of Lightstone 's 
article, there were three "property tax-relief bills" before the 
Assembly, one of which — not the one being supported by CED — 
was allegedly being promoted "by the Governor" with "strong help 
from the Republican Caucus . " This measure was dismissed by 
Lightstone as "a counterfeit attempt at tax reform" that "contains 
insufficient relief for low and middle-income homeowners and 
effectively does nothing for renters." Another article, "the 
public eye," indicated further criticism of Governor Brown, 
partly because of Brown's appointment of "another banker to head 
the state's chief business agency" and partly because 

Rather than attacking potential Republican opponents 
like [California Attorney General Evelle] Younger as 
tools of big business, however, Jerry Brown has chosen 
to fight propaganda with propaganda. .. .Following its 
(made in New Jersey) "California Means Business" button 
extravaganza, the Governor's office has recently issued 
an "Economic Report of the Governor 1977" which reads 
more like a Chamber of Commerce brochure than a govern- 
ment study. Despite the continuing economic doldrums, 
the report continually refers to the "overall health" 



19 



and "dynamic quality" of the California economy 

Latest reports indicate that Brown is p3 -inning a late- 
August extravaganza to celebrate the space shuttle at 
Edwards Air Force Base in Lancaster, California, presum- 
ably both to push his proposal for space colonies and 
the line that the space program produces jobs [emphasis, 
and punctuation as in orginal] 

The February 1978 CEP NEWS continued to reflect CED's opposi- 
tion to nuclear power facilities , this time bearing down on the 
Sundesert nuclear plant and criticizing Los Angeles Mayor Tom 
Bradley for his support of the facility and alleging that the Los 
Angeles Department of Water and Power had "emerged as the main 
force pushing for" the plant, "most recently prodding Mayor Tom 
Bradley into an open confrontation with Jerry Brown (who is 
opposed to Sundesert) . " The National Association for the Advance- 
ment "of Colored People was also excoriated for "caving in to the 
energy corporations" by adopting a "pro-oil company line on such 
issues as deregulation of natural gas and nuclear power." In the 
CED view, "corporations apparently not only take over everything 
from the media to sports teams, but formerly liberal organizations 
as well..." This issue of the paper also contained a "Grassroots 
Action" calendar similar to the "Campaigner's corner" column in 
the March 1977 Campaigner for Economic Democracy : 

SAN DIEGO: Recruiting membership through community 
education and lobbying for responsible redevelopment. 
A new letter-writing campaign for SolarCal has begun. 
New office is at 3000 E St., S.D. 92102. Phone (714) 
234-0106. 

WEST L.A. : Continuing to mobilize pressure for SolarCal 
on Assemblyman Mel Levine and to work on a poll on rent 
control and other local issues. 

SAN FERNANDO VALLEY: Planning a day with Tom Hayden on 
March 8 with campus speeches and a community meeting, 
and participating in a Town Hall meeting Feb. 25 on 
housing issues. 

ORANGE COUNTY: Involved in campaigns of two progressives, 
Manuel Gomez for Santa Ana School Board and Larry Agran 
for the Irvine City Council. 

M.A.P.C. (EAST L.A. ) : Working with the Immigration 
Coalition on two fund-raisers to send people to testify 
at immigration hearings in Washington; working with the 
Solidarity Committee on a Solidarity Dinner March 11. 

SANTA MARIA : Continues work on CED member Jim Woogerd • s 
campaign for Mayor. 

BERKELEY: Major projects include a women's conference 
(as a follow-up to the Houston conference) on March 5 



20 



and a four-day event around Sun Day. Precinct work to 
recruit memberr , will begin so n. Gained the Berkeley 
Energy Commission endorsement of SolarCal. 

RIO HONDO: Working on a fundraising dinner-dance with 
Tom Hayden and Jane Fonda in April to introduce the new 
chapter to the community, and doing research on local 
issues . 

YOLO: Launched campaign for publicly owned city bank, 
and put a referendum on the city's investments in South 
Africa on the March ballot in Davis. 

FUNDRAISING: Celebrity auction is coming up April 2. 
A research committee is looking at local issues. 

BAKERSFIELD : Planning an economic development conference 
on Kern County issues and strategy. New food coop is 
in operation. 

SAN FRANCISCO: - A labor support task force is working 
on the Coors and J. P. Stevens boycotts; work continues 
in the S.F. Housing and Muni[cipal?] Coalitions. 

OAKLAND: Continuing work on service center and building 
chapter . 

SAN JOSE: Working in district elections coalition and 
researching local campaigns. SolarCal work continues. 

SANTA CRUZ: Working against recall of Supervisor Phil 
Baldwin. 

MONTEREY: Continuing local membership drive and coali- 
tion work with Monterey County Health Council. 

SAN MATEO: Getting ready for a fundraiser with Tom 
Hayden in March and district elections initiative on 
the June ballot. 

CHI CO: Getting petitions signed for CED member Jane 
Dolan's campaign for County Supervisor. 

HAYWARD: Voter registration continues for CED member 
Marianne Camp ' s race for City Council . 

Hayden 's 1978 "Dear Friend" appeal included a concise outline 
of CED's program to resolve "the 'crisis of the cities'" through 
"an economic development policy that creates productive jobs, 
maintains needed services, and at the same time relieves the 
gouged middle class of an insufferable tax burden." Hayden 's 
apparent solicitude for the "gouged middle class" is interesting 
on a number of accounts, given his exceptionally radical background; 
he explained it by saying that "If the large interests get more 



21 



tax breaks, and the poor get welfare, the middle class might as 
well forget the American dream." The "crisis of the cities" 
program was described in the following language: 

CED is pushing for progressive tax reform that protects 
both the individual homeowner and renter from skyrocket- 
ing taxes and speculation. We have been working with 
Senators Dunlap, Petris, Roberti, and Sieroty, as well 
as senior citizen, labor, and tax-payer groups all over 
the state for the best possible package in Sacramento. 

We are working with the Governor's Office of Planning 
and Research on their proposed "urban strategy", with 
an emphasis on saving existing neighborhoods, bringing 
jobs back to the inner city, protecting precious farm 
land, and putting an end to "urban sprawl". 

We support the "state bank" legislation proposed by 
Senators Dunlap and Petris, as an immediate way to 
re- invest money where it belongs — in California's . 
cities instead of Swiss Banks. 

Many local CED chapters are working against expensive 
downtown "redevelopment" schemes, outrageous housing 
speculation, and uncontrolled rent increases . 

CED has also supported what Hayden called "legislative 
efforts to contain the spiraling cost of medical care" and such 
other causes as a United Farm Workers "demand for protection 
against the mechanization of farm labor that throws farm workers 
onto the welfare rolls." As indicated earlier, the Campaign is 
also actively opposed to U.S. investment in South Africa; Hayden 's 
letter referred specifically to CED's being "involved in the 
struggle to get the University of California to 'dis-invest' the 
public's money from South Africa." And, of course, apparently 
central to everything else, "We actively support 10-20 local 
campaigns every year for county supervisor, city council, or 
state legislature" with organizers "knocking on doors today from 
East Los Angeles to Chico trying to form activist chapters . " 

NATIONAL FOCUS ON "TENANTS' RIGHTS" 

An account published in the January 26, 1980, edition of the 
Washington Star indicated that CED's political activism is taking 
on a distinctly national emphasis in at least one area of concern 
to the Campaign over the years : so-called tenants ' rights . 
Headlined "Tenant Associations Trying To Form a National Lobby, " 
this article mentioned a meeting in Newark, New Jersey, "last 
month" attended by representatives "of 50 local tenant organiza- 
tions" interested in "formation of a national tenants' rights 
coalition" with one of the actions agreed upon at the meeting 
being "a national convention next summer, possibly in Los Angeles." 
The first five paragraphs of the article are especially instructive: 



22 



LOS ANGELES — Concerned about rising rents, the 
increasing conversion of apartment buildings to* condomi- 
niums and other issues that affect their pocketbooks, 
tenants ' organizations around the country are. attempting 
to. form a national renters' lobby.' 

On a local basis, organized renters have begun to 
assert themselves politically in a number of states 
over the last year or so, and in some instances have 
managed to win approval of laws limiting rent increases 
and barring conversion of rental apartments to condomi- 
niums. 

Leaders of some of the groups that won these 
victories say they envisage establishing a "national 
tenants' rights" organization and met recently to set 
goals . 

"We see it as high time that political pressure 
was brought on behalf of tenants," said Cary Lowe, a 
tenants ' rights specialist for the Campaign for Economic 
Democracy. This group, founded by Tom Hayden, the 
antiwar activist, has been instrumental in winning rent 
control ordinances in several California cities. 

If all goes well, Lowe said, tenants' groups will 
attempt to campaign in the 1980 elections in behalf of 
candidates and issues they favor. The group, he said, 
will not be part of Hayden' s organization, but will be 
aimed at exercising the political power of a large 
minority that has largely been ignored by politicians. 

SOLARCAL 

As may readily be seen from several previously-cited examples, 
a major priority in CED organizing has been promotion of solar 
energy in California, what the June-July 1977 ced news called "a 
state-owned solar industry." The specific form this activity has 
taken is promotion of SolarCal', described in a CED brochure as 
"the recently created state solar energy council initiated by CED 
and established by Governor Brown to develop a plan for the 
maximum solarization of California in the 1980s . " CED claims 
that SolarCal 's potential includes "Over 400,000 jobs, renewable 
energy, and lowered utility bills." Hayden 's 1978 "Dear Friend" 
letter outlined CED's program to meet "the need for solar energy 
and other renewable resources": 

CED is proposing legislation which can make California 
the capital of a solar energy industry. The State 
Energy Commission has endorsed our view that solar is 
"ready for commercialization". Our own study shows 
that an incredible 400,000 jobs per year can be created 
if we make a maximum effort to use solar for space and 
water heating. 



23 



We have developed a specific "SolarCal" package of 
bills including loans to small businesses and consumers, 
a ten-year plan to solarize every feasible building in 
California, and a prohibition against monopoly takeover 
of the sun. 

I will personally be in Sacramento meeting with legisla- 
tors to finalize these urgently needed bills. Our two 
"SolarCal" statewide coordinators will be seeking 
endorsements from public officials, labor and community 
groups, as well as generating petitions and telegrams 
to the capitol. 

An early reference to this project appeared in the April 16, 
1977, edition of the San Diego Union in an article on an appearance 
by Hayden in Sacramento "to describe [in Hayden's words] the 
draft of a proposal for state legislation that would create 
SolarCal, a public solar energy corporation, as the key to meeting 
California's energy and economic crisis." It is noteworthy that 
the article drew attention to Hayden's companions on this occasion: 
"Alvin Duskin, director of Pacific Alliance and author of the 
Nuclear Safeguards Initiative of last year, and Fred Branfman of 
the California Public Policy Center." Both Duskin and Branfman 
have been actively associated with CED, but this is not the 
primary reason for. their association with Hayden's being of 
particular significance; rather, its significance lies in the 
nature of the Pacific Alliance and the CPFC. 

As will be demonstrated in Part II of this study, CED main- 
tains a close relationship to several components of the nationwide 
apparatus created by the Institute for Policy Studies, principal 
"think tank" for the New Left in the United States. Both the 
Pacific Alliance and the California Public Policy Center are 
integral, parts of this avowedly leftist apparatus; though CPPC 
was not created by IPS, it soon fell under the leadership of 
IPS-connected activists and has since received funds from IPS, 
while the Pacific Alliance was created as a project of the Founda- 
tion for National Progress, self -described as "formed in 1975 to 
carry out on the West Coast the charitable and educational activi- 
ties of the Institute for Policy Studies." 

Branfman, as director of CPPC, wrote an article published in 
the June 18, 1977, issue of The Nation , a leftist weekly, in 
which he described SolarCal as a project "originally launched by 
Tom Hayden of the Campaign for Economic Democracy" that would, 
among other things, "set up a solar development bank to lend 
money to consumers and small business people, thus reducing the 
'front-end' costs of installing solar equipment." However, an 
article in the December 1, 1977, issue of the Daily Californian 
dealing with "a state hearing on the future of solar energy in 
California" at which Hayden "introduced a proposed legislative 
plan called 'SolarCal'" characterized the proposal as "a product 
of research by the California Campaign for Economic Democracy and 
the California Public Policy Center," a characterization that 



24 



appears far more accurate. Much of the basic justification for 
SolarCal is in fact contained in a CPPC study, JOBS FROM THE SUN , 
published in February 1978 and formally announced by Hayden at a 
press conference on February 8, 1978; both the study and the 
press conference were discussed at length in a lead article by 
Branfman in the February 1978 CEP NEWS . Branfman served as 
project director for JOBS FROM THE SUN , with Steve LaMar cited as 
consultant. Grateful acknowlegement was also made to "the follow- 
ing persons for their valuable prepublication review of this 
study" : 

o Charles F. Armin Director, District No. One, Oil, 

Chemical and Atomic Workers Interna- 
tional Union, AFL-CIO, Long Beach, 
CA 

o Mark Braly Energy Coordinator, Office of the 

Mayor of Los Angeles, CA 

o E. s. (Ab) Davis Solar Analyst, Jet Propulsion . 

Laboratory, Pasadena, CA 

o Howard Kraye Solar Businessman, Chairman, Southern 

California Solar Energy Association, 
Glendale, CA 

It is of particular interest that JOBS FROM THE SUN "was 
made possible in part by the generous help of the Stern Fund, 
Abelard Foundation, Liberty Hill Foundation, New York Community 
Trust, Pacific Alliance, Foundation for National Progress, DJB 
Foundation, Pat and Dan Ellsberg, Stewart Mott and Stanley 
Sheinbaum." Stern has been a major grantor of funds to IPS, as 
has DJB; and Mott's largesse in behalf' of numerous components of 
the anti-defense lobby is well-known.* 

A CED advertisement carried in the February 9, 1978, edition 
of the Sacramento Bee listed the following "SolarCal Endorsements 
( only the beginning ) " : 

Robert Black, Mayor of Davis, California 

CAUSE 

Congressman Ron Dellums 

Phil Draper, Center for Independent Living 

Alvin Duskin, Pacific Alliance 

Mervyn Dymally, Lt. Governor 

Daniel Ellsberg 

Jane Fonda 

John George, Oakland Supervisor 



*See, for example, Heritage Foundation Institution Analysis No. 10 , "The 
Anti-Defense Lobby: Part I, Center for Defense Information," April 1979. 



25 



John Maher 

Jim Mellon, solar developer 

Assemblyman Henry Mello 

Mayor George Moscone of San Francisco 

Valerie Pope, San Bernardino 

Santa Clara County AFL-CIO and Sierra Club 

SEIU 535, 715 

Stanley Sheinbaum, UC Regent 

Otto Smith, UC Professor 

Alice Travis, Democratic Party Women's chair 

The endorsement from the Santa Clara County Sierra Club is 
of some interest when contrasted with a complaint attributed to a 
lobbyist for another environmental activist organization, Friends 
of the Earth, in an article by Joel Kotkin in the July 5, 1979, 
edition of the Washington Post . Kotkin alleged that certain 

liberal activists fear that Hayden and his wife, actress 
Jane Fonda, have been able to capture unmerited media 
attention to the exclusion of other groups working on 
such issues as rent control, nuclear power and solar 
energy. In the style of [Governor Jerry] Brown, they 
claim, Hayden 's operation is largely a media hype, 
winning precious television time and newspaper headlines 
while others are doing the hard, day-to-day work. 

"He's taking credit for things like the solar 
power movement in California, and that's just horse 
manure," said Mark Vandervelden, Sacramento lobbyist 
for the environmentalist Friends of the Earth. "He 
took what was already a moving thing and, by flapping 
his arms and talking louder than anyone else, he took 
all the credit." 

Irrespective of whether such criticism was justified, Hayden 
was among those appointed to the SolarCal council after the 
agency was brought into being in 1978. An article in the July 
22, 1978, edition of the San Diego Union specified that SolarCal 
"was created on Sun Day" and that Governor Brown "appointed a 
cross section of people involved in solar energy to serve" on the 
27-member council. Hayden 's goals in the solar energy field were 
neatly summed up in an interview published in the October 29, 
1979, issue of Barron ' s ; 

Q. One of your pet projects is solar power. How 
would you like to see that develop? 

A. In terms of alternative energy development, 
our position in California is a mirror image of what I 
would think appropriate nationally; that is, a partner- 
ship between competitive enterprise and government. 



26 



Q. State capitalism? 

A. I wouldn't put a particular name on it. I'd 
just like to keep solar businesses afloat in California 
because they're more in the forefront, more inventive, 
more innovative than other companies have been. And I 
think it's generally the case that smaller businesses 
have played that role. We need antitrust laws, we need 
capital assistance, we need whatever will keep a compe- 
titive solar industry developing. The role that govern- 
ment can play is to simplify regulations that drive the 
small solar entrepreneurs crazy or out of business — 
the cost of having your system tested, etc. The positive 
role that government can play is a procurement role. 
It's all right for the government to procure M-l tanks 
from Chrysler. Why couldn't it procure fuel-efficient 
vehicles for the government fleet? Let there be compe- 
titive bidding on photovoltaic cells. 

Q. Photovoltaic vs. other available energies? 

A. No, I think we ought to stimulate the photovol- 
taic industry. You can't say it's uneconomical, because 
you've got nuclear and the oil industries with all 
sorts of subsidies that photovoltaics don't have. 
Either take the subsidies away from oil and nuclear, 
and make it a real free market, or give some equivalent 
break to photovoltaics. 

LAUREL SPRINGS EDUCATIONAL CENTER 

Another aspect of CED's activities is of special interest as 
an indication of the organization's long-term intentions. The 
June- July 1977 ced news carried the following item: 

10 miles North of Santa Barbara, in the San Marcos . 
Pass at an altitude of 2,800 feet, rests the 120 acre 
Laurel Springs Ranch. The land sits on the Southerly 
slope of the Santa Ynez mountains and will be used by 
the Campaign for Economic Democracy. 

The land was purchased to provide a site for the 
development of alternative sources of energy, such as 
solar and wind; waste removal and recycling systems; 
CED ' s Organizer Training Institute ; and a children ' s 
summer camp. 

A CED appeal signed by Tom Hayden, Jane Fonda, Representative 
Ron Dellums, and United Farm Workers of America, AFL-CIO, President 
Cesar Chavez mentioned the organization's "multi-racial and 
multi-class children's camp at the Laurel Springs Retreat" and 
cited as an advantage of membership the "opportunity to meet and 
get to know political activists from all over the state" in 



27 



periodic organizer training workshops — some in the 
cities and others at the Laurel Springs Retreat in the 
mountains above Santa Barbara — where you can increase 
your skills in the fields of electoral campaigning and 
community organizing or learn more about the way our 
economic and political systems operate and what CED's 
alternatives are. 

An early reference to this enterprise appeared in the April 
8, 1977, San Francisco Chronicle in an Associated Press item 
recounting that "Political activist Tom Hayden says he is close 
to completing the purchase of a 120-acre ranch north of Santa 
Barbara" and adding that, in a telephone interview, Hayden had 
said 1 "he and his wife, actress Jane Fonda, are buying the ranch 
with Fonda * s motion picture earnings . " The article further 
quoted Hayden as saying that "the purchase price is 'in the 
neighborhood, of half a million dollars, with about $50,000 down.'" 
A somewhat later article published in the May 26, 1977, edition 
of the San Francisco Examiner reflected that Hayden and Fonda had 
"recently purchased" the ranch for $500,000 and quoted Fonda as. 
to the reason for such a move: "'We're building a political 
power base, ' she said. 'To be able to do this, you have to be 
able to bring your people together. We needed a land base for 
that. 1 " With respect to financing, the Laurel Springs facility 
"was bought with ' a bank loan based on future film earnings , ' she 
said. 'I think it's a responsible way to use my capacity to earn 
large sums of money making films.'" 

The actual and potential functions of the Organizer Training 
Institute, which, as mentioned above, is conducted at the Laurel 
Springs site, were indicated succinctly in the Summer 1977 issue 
of Santa Barbara Tomorrow : 

Although Hayden promised to hold no large political 
gatherings at the site, he did not attempt to disguise 
his plans for regular strategy meetings by organizers 
of the Campaign for Economic Democracy. Nor did he 
rule out creation of a "training institute" potentially 
to be financed in part by, taxpayer's funds. The insti- 
tute would be designed to impart organizational skills 
to CED activists, but also to publicly-supported groups. 
"We might contract also with community or government 
agencies or unions , " Hayden announced in April , 
"—people who have staff to train." 

On January 6, 1978, the San Francisco Chronicle carried an 
article revealing that Hayden and Fonda "have been given permission 
to open a children's camp" at the Laurel Springs location, adding 
that "The county planning commission voted Wednesday [January 4, 
1978] to approve the application for the camp for low- income 
urban children." The article stated that Hayden "said the camp 
will be open to all children and its activities will include 
crafts, hiking, horseback riding, animal husbandry, gardening and 
group games" and reported that "The camp will be administered by 



28 



the Center for Public Policy, a nonprofit organization set up by 
Fonda and Hayden . " 

CED literature promoting the summer camp is issued by the 
Laurel Springs Educational Center, an entity incorporated in July 
1977 by three people: Sam Hurst, Sr., of Pacific Palisades, 
California; Sam Hurst, Jr., of Venice; and Jane Fonda of Santa 
Monica. The organization's officers further reflect the tie to 
CED. Listed as president, vice president, secretary, and treasurer, 
respectively, were Sam Hurst, CED staff director; Jane Fonda; 
Cass Levison, a CED staff member; and Marin Marcus, a close 
friend of Hayden and Fonda who serves as the camp's director. 

A "Laurel Springs Camp 1978" brochure issued by the Laurel 
Springs Educational Center and bearing the Los Angeles address 
and telephone number of the Campaign for Economic Democracy 
described the camp as "fun, educational, affordable and, most of 
all, a new way to create a better future." The brochure listed a 
variety of activities of the sort cited above but also specified 
that the camp teaches "not only traditional camping skills, but 
the deeper values of cooperation, democracy, and social justice." 
Continuing, "Twenty-five to thirty children age 7-14 of different 
backgrounds are chosen for each session" at a "cost per two week 
session" of "$200 per child." Arrangements have been made, 
however, "to offer an alternative, affordable camp experience 
open to children on a sliding financial scale" with "Fundraising 
ef forts ... now underway to provide full and partial scholarships." 

Despite Hayden 's (and the brochure's) emphasis on such 
activities as horseback riding, gardening, and crafts, it would 
appear that the activities conducted by Laurel Springs Educational 
Center are heavily interlarded with political and economic contro- 
versy. A December 1979 study published by the Rockford College 
Institute reported that, according to the August 29, 1979, issue 
of Time magazine, the camp was serving some 

150 youngsters from 7 to 14. Mostly the offspring of 
minorities and veteran left-wing activists, the children; 
are schooled in such weighty issues as why farm workers 
should be unionized or why gas companies should not be 
allowed to construct a liquefied natural gas terminal 
on sacred Indian land along the California coast. 

Another account published in the September 4, 1978, edition 
of the Kansas City Star buttresses this assessment. Characteriz- 
ing the Laurel Springs facility as "originally Hayden 's idea,"* 



"It now appears that this camp is not the only CED program aimed specifi- 
cally at young people. According to an article in the May 2, 1980, issue of 
National Review by former Washington Post reporter Ivan Goldman, "Tom Hayden 
is recruiting students again. He spoke at our campus [California State Univer- 
sity, Dominguez Hills, where Goldman now teaches communications ] recently," 
the "recruitment this time" being "for something called Students for Economic 
Democracy, the adolescent affiliate of" CED. In Goldman's view, "Both SED and 
CED are, at this point, aimed only at California, .and designed as springboards 
for another Fonda- financed senatorial campaign for Hayden in 1982." 



29 



this article goes into considerable detail in describing the 
camp's personnel and the "nuts and bolts" of its operations. The 
following paragraphs are particularly illuminating: 

Marin Marcus, camp director, says diversity is 
central to the camp's goals. "One of the things Laurel 
Springs is all about is learning to get on collectively 
with everyone else, even if it's someone you're not 
fond of," Marcus explained. "We selected the kids on 
the basis of race as well as age group and previous 
camping experience. We wanted a cross-cultural, multi- 
racial, bilingual group." 

Many of the children come from inner-city homes or 
from farm-worker families across the state, and only 
one-fifth of the parents can afford the full $200 
tuition for the two-week session. The rest receive 
full or partial financial assistance through funds 
raised largely with the help of Hayden's political 
organization, Campaign for Economic Democracy (CED). 

Indeed, one member of the camp staff suggests that 
Hayden uses camp scholarships as a form of patronage 
toward CED staff members who receive low salaries. In 
addition, virtually all the camp's equipment — from 
cooking utensils to piano to the camp's 13 horses — 
was donated by CED members and by Santa Barbara residents. 

"The local community has been really supportive," 
Marcus said, adding, "There aren't many camps that are 
available to low- income kids, and that aren't sexist or 
racist or something." 

Sexist or racist Laurel Springs is not. 

In the off-season, for example, most of the staff 
members work in politically or socially active jobs. 
One counselor is an attorney with the Agricultural 
Labor Relations Board. Several of the women are heavily 
involved in the feminist movement. The cook played an 
active role in the anti-war movement in the late '60s, 
and helped run Hayden's 1976 senatorial campaign. 

The appearance of the lodge, which serves as a 
central meeting place, suggests something about the 
camp ' s politics . A large red posterboard leans against 
the fireplace, displaying 12 Chinese characters, a 
recognizable ideograph, and a corresponding English 
word. 

Across the room hangs a poster depicting two 
embracing monkeys in a tree, with a caption that reads, 
"Livin 1 in the jungle takes friends." And taped to the 
walls are long scrolls bearing Bills of Rights — 



30 



written by campers — for everything from farm workers 
to wild animals-. One scroll, the Bill of Rights for 
Children, is especially long. Its solemn particulars 
include: 

* Peace from parents. 

* Not to be criticized for what you are. 

* Respect from adults. 

* Not to be ignored by anybody. 

"All the kids have something political to bring to 
the camp," Marcus said. "Everyone has something to say 
about Proposition 13, for example, and solar energy 
versus nuclear. . Many of them have parents who are 
deeply involved politically. Politics affects all 
their lives . " 

Indeed, it seems the campers bring as much to the 
camp politically as do the counselors . One night in 
July, for example, everyone in camp attended a fiesta 
in Santa Barbara. A group of Laurel Springs kids whose 
parents were farm workers contributed by organizing a 
skit about the United Farm Workers, in which one of the 
campers played UFW leader Cesar Chavez. 

"It's not that the camp was intended for some sort 
of political indoctrination," Miss Fonda explained. 
"But Tom and I know Marin [Marcus] really well, and we 
know that as long as Marin and two of the other central 
women are here, there is going to be de facto an underly- 
ing content to the program. It's not in words or dogma 
or anything like that. It's just there, because of who 
they are . " 

That underlying content takes a variety of forms 
in the day-to-day running of the camp, and clearly the 
tone of that content is social as well as political. 
Campers frequently take part in co-ed evening swims, 
for instance, in which bathing suits are optional and, 
as one staff member put it, "No big deal is made about 
anyone ' s body . " 

And every morning, after the campers complete 
their chores, like taking the breakfast garbage out to 
the pigs, the entire camp assembles to discuss the 
day's activities. This meeting is a forum for campers 
to bring up their grievances with the way the camp is 
run, and to ask for changes in rules they dislike. 

With the foregoing indications of what Fonda has called the 
"underlying content" of Laurel Springs Camp's program in mind, it 
may strike the reader as being somewhat bizarre that, as one of 
the means by which it raises funds, Laurel Springs Educational 
Center solicits contributions and that, as stated in the "Laurel 
Springs Camp 1978" brochure, "All contributions are tax-deductible." 



31 



STAFF AND ORGANIZATION 

To implement its programs, the Campaign for Economic Democracy 
relies on its paid staff and the "local activists, involved in 
electoral politics and community organizing" in the network of 
chapters it maintains throughout California. Both the staff and 
the network have grown in the years since CED's creation. Accord- 
ing to the March 1977 Campaigner for Economic Democracy , the 
Campaign at that time consisted "of 15 chapters around the state" 
and had "its own organizational structure including a 9-person 
Organizing Committee, a 40-person Steering Committee and programs 
such as Organizer Training." The June- July 1977 ced news claimed, 
in addition to the newspaper, an Organizer Training Institute, 
and a "CAMPAIGN TASK FORCE," a "SACRAMENTO LEGISLATIVE COORDINATOR" 
and "18 COMMUNITY ACTIVIST CHAPTERS." Hayden's 1978 "Dear Friend" 
letter mentioned a "staff of 15, operating out of our statewide 
offices in Los Angeles and Sacramento," while the January 1980 
Libertarian Review article, as previously noted, spoke of "a paid 
staff of twenty-one." An April 1, 1978, study issued by the 
Foundation for Public Affairs reflected similar growth in the 
number of chapters: "25 local chapters in urban areas throughout 
the state of California," an increase of approximately two-thirds 
in little more than one year. 

Probably to no one's surprise, leadership in CED has tended 
to be in the hands of activists from the 1976 Hayden Senate 
campaign, some of these people also sharing Hayden's former 
involvement in SDS. As observed in a May 1977 California Journal 
article, "The CED springs directly from the Hayden campaign of 
last year as do its principle [sic] organizers — former SDS and 
Hayden campaign members Bill Zimmerman, Sam Hurst and Shari 
Lawson." All three have occupied responsible positions within 
the CED leadership. Zimmerman has been involved in fundraising, 
as he was in the Hayden campaign; Hurst has been cited in CED 
publications as "Southern California Organizer" and, more recently, 
as staff director; and Lawson, whose background includes an 
active role as an organizer for the Hayden-Fonda Indochina Peace 
Campaign, "a militantly pro-Hanoi operation,"* is director of 
CED's Organizer Training Institute. 

The April 1978 Foundation for Public Affairs study listed 
five people as members of CED's executive committee, there being 
two vacancies at the time; the five were Hellen Dowden, Carol 
Hitchcock, Ken Msemaji, and Andy Spahn, with Hayden listed as 
chairman. The June- July 1977 ced news had listed two executive 
committee members as of that time: Chuck Carlson and Jan Smutney 
Jones; this was also the document that mentioned Sam Hurst as 
"Southern California Organizer." The February 1978 issue of CED 



*For background data on. IPC, see Heritage Foundation Institution Analysis 
No. 12 , "The Anti-Defense Lobby: Part III, Coalition for a New Foreign and 
Military Policy," December 1979. 



32 



NEWS , in addition to characterizing Hurst as staff director and 
Lawson as "Director of the Organizer Training Project," listed 
the following five people as comprising the CED staff: Hank 
Barnard, Bonnie Ladin, Cass Levison, Sarah Mack, and Stephen 
Rivers . In a reference that clearly indicates CED ' s being taken 
seriously within the political establishment in California, an 
interviewer in the same issue stated that CED intended to support 
Lieutenant Governor Mervyn Dymally's reelection because of CED's 
"friendly relationship" with him, adding that "he has been very 
supportive of us. He is a member of CED. He has endorsed Solar- 
Cal, and he comes to our events regularly." 

The last page of the February 1978 CED NEWS also carried a 
list of people to contact "For More Informaton. " This list 
included one contact for fundraising purposes and 22 listed as 
contacts in various cities around the state, presumably CED 
chapters : 

BAKERSFIELD: David Peck 831-9687 

BERKELEY: Andy Spahn 841-4258 

CHI CO: Harry Yound 343-4831 

EAST LOS ANGELES: Dolores Sanchez 660-3698 

FUNDRAISING: Hazel Washburn 626-0311 

HAYWARD: Michael Sweeney 538-7827 

LONG BEACH: Jan Smutney Jones 434-8239 

MONTEREY: Corey Miller 372-4778 

OAKLAND: Paul Milne 835-0131 

ORANGE COUNTY: Jim Klein 774-5726 

PALO ALTO: Mignon McCarthy 323-9259 

RIO HONDO: Conrado Terrazas 626-0311 

SACRAMENTO: Peter Keats 443-8540 

SAN DIEGO: Barbara Filner 582-9418 

SAN FERNANDO VALLEY: Jim Rufer 344-0531 

SAN FRANCISCO: Hilary Lamar 587-0102 

SAN JOSE: Bob Brownstein 298-4575 

SAN JUAN BAUTISTA: Ricardo Vasquez 623-4007 

SAN MATEO: Phil Raf allow 952-0672 

SANTA CRUZ: Tom Starkey 476-6833 

SANTA MARIA: Jim Woogerd 922-4456 

WEST LOS ANGELES: Josh Sale 821-5183 

YOLO/DAVIS: Patti Lightstone 756-4321 

STAFF AND ORGANIZATION (ADDENDUM) 

Since completion of the present study, the Foundation for 
Public Affairs as issued a revised version of its April 1978 
paper on CED. Made available with a covering letter dated July 
1980, this document specifies that CED now has 8,000 members in 
some 30 chapters in the state of California, minimum chapter 
requirements being "10 dues-paying members willing to canvass, 
distribute leaflets and attend rallies; CED claims to have 400 of 
these activists throughout the state." Like the January 1980 
Libertarian Review article, this study reflects that CED has a 



33 



staff of 21 people; it further specifies that these 21 employees 
are broken down as follows: "15 organizers. .■ 1 lobbyist, 5 admini- 
strative staff." Mignon McCarthy is listed as staff director. 
The paper indicates that Hayden continues as chairman of both the 
Steering Committee and the Executive Committee of CED and reports 
that the "Steering Committee has 40 members and 40 alternates." 
The April 1978 study indicated that there were seven members of 
the Executive Committee; the revised version lists eight: "Tom 
Hayden, Chairman; Ken Msemaji, First Vice Chairman; Jane Dolan, 
Second Vice Chairman; and Domingo Rodriguez, Judith Goldstein, 
Don Villarejo, Barbara Buswell and Bonnie Ladin, At- Large Members." 

BUDGET AND FINANCING 

As mentioned at the beginning of the present study, CED's 
budget as of January 1980 was estimated at "about $300,000 per 
year." According to Hayden' s 1978 letter, "Our money comes from 
mailings like this one, door-to-door soliciting, speaker's hono- 
rariums, benefit concerts, and many, many personal contributions." 
An article published in the August 1979 issue of the California 
Journal reported that each of CED's 17 paid staff members as of 
that time, whether he (or she) be director or clerk- typist, 
received the same salary of $800 per month. Assuming that each 
of the 21 paid staff employees as of January 1980 is receiving 
the same $800 per month, staff salaries would have to represent a 
minimum outlay of $201,600 per annum, slightly in excess of 
two-thirds of the organization's $300,000 estimated annual budget. 
Further, CED literature reflects that the annual membership fee 
is $15 per person; thus, if one were to assume Hayden 's claim of 
8,000 members to be generally accurate, one could also assume 
that the Campaign can expect to realize $120,000 of its annual 
needs from this source alone. Of course, if the 500 to 1,000 
activist members estimated in the January 1980 Libertarian Review 
article are the only ones paying the $15 annual dues, the resultant 
income to be realized from this source is drastically reduced; 
this is even more the case if one accepts the estimate of "300 or 
so active members" carried in an extensive discussion by Jeffrey 
Klein in the February/March 1980 issue of Mother Jones , a radical 
monthly magazine published in California by the IPS-affiliated 
Foundation for National Progress. 

By far the most important source of funds for CED appears to 
be Jane Fonda herself. This is indicated clearly by a number of 
disparate sources ranging from the October 29, 1979, issue of 
Barron ' s , which reported that "CED and related activist groups" 
benefit from "hefty contributions from Fonda's motion picture 
earnings", to Libertarian Review , which stated that CED's budget 
is "raised mostly by Fonda and her Hollywood connections", to the 
far more favorably disposed Mother Jones , which noted that "Hayden 
is built into the driver's seat, and Fonda buys most of the gas. 
Through direct contributions, film benefits, concerts and celebri- 
ty events arranged through her connections, Fonda finances the 
majority of CED's impressive budget." Fonda has her own Hollywood 
production company (IPC, for "Indochina Peace Campaign") and, as 



34 



reported in the December 16, 1979, Parade magazine, is likely to 
"earn anywhere between $10 million and $50 million by 1985." The 
Parade article also reported that "Students of the political 
scene in California predict that if Gov. Jerry Brown runs for the 
U.S. Senate in 1982... then Tom Hayden will run against Lt. Gov. 
Mike Curb for the governorship of California." 

Fonda accompanied Hayden on an October 1979 tour of some 52 
cities across the United States, a tour that reportedly cost CED 
about $150,000. Designed to promote CED, the Hayden-Fonda tour 
encompassed appearances at some 34 colleges and universities and 
such other events as union conventions, anti-nuclear rallies, and 
television "talk shows." According to the Barron ' s account, "The 
tour was organized by the CED, and financed largely by campus 
speaking fees, which ran to $5,000 a whack." 

The importance of Jane Fonda to the financial end of Hayden 's 
operations was indicated at least as early as January 1977 in 
accounts of what an article in the January 17, 1977, edition of 
the San Francisco Examiner characterized as "a Berkeley gathering 
of about 300 liberal politicians, precinct workers, labor leaders 
and community activists from across the state for a two-day 
conference on 'How to Get Progessives Elected. 1 " The Examiner 
account guoted Hayden as saying that "Our aim is to create a new 
political movement to build a backbone, not a wing, of a success- 
ful progressive movement" and added that the conference "was an 
outgrowth of the Hayden campaign and ' a continuing attempt to 
build a progressive movement, ' Hayden said. " Hayden reportedly 
defined "progressives" as candidates "who will 'not be bought by 
the corporate world' and will 'maintain accountability to the 
grass roots and not use their positions as stepping stones to the 
bureaucracy.'"* Also, "while emphasizing that the group seeks 
the support of the Democratic Party," he "said the issue of 
'corporate interest' should be confronted by the party." The 
relationship between this effort and Hayden 's unsuccessful 1976 
campaign was further emphasized in the following: 



*Hayden's concept of political progressivism is apparently eclectic, to 
say the Least. The March 24, 1977, edition of the Daily World , official 
newspaper of the Communist Party,. U.S.A., reported that Mark Allen, "the 
dynamic Black activist who is running for a City Council seat" in Berkeley, 
California, was being supported by an "ever-growing list" of endorsers. In 
addition to such organizations as the Berkeley Black Council, "basically a 
Democratic" Party group, locals of the United Electrical Workers and the 
International Longshoremen's and Warehousemen's Union, both of which have long 
been known as Communist- run, and locals of the "American Federation of State, 
County and Municipal Workers" and the Service Employees International Union, 
AFL-CI0, groups supporting Allen, characterized in the article as "chairman of 
the city's Human Relations and Welfare Commission" and as a "People's World 
staff writer and Communist Party district board member", included "The Berkeley 
chapter of the Campaign for Economic Democracy, a formation that grew out of 
Tom Hayden' s remarkable though unsuccessful fight for the Democratic Senatorial 
nomination last Fall." 



35 



"We are growing up, learning, " he said. "You have 
here people who managed Ben Tom's successful campaign 
for the San Francisco School Board. People who also 
worked in my campaign. They went from mine to his, but 
had started as volunteers . " 

Workshop subjects during the conference ranged 
from advertising and speech writing, canvassing and 
polling to methods of attracting labor and minority 
voters and getting initiatives, propositions and refer- 
endums on ballots. Hayden's wife, actress Jane Fonda, 
conducted a session on political fundraising. 

Another account published in the January 17, 1977, edition 
of the. San Jose Mercury made it clear that the conference was 
specifically a CED function, perhaps the first such gathering 
called by CED as such. The report mentioned that "Fund-raising 
appeals have been mailed to 15,000 people who contributed to 
Hayden's campaion [sic] against John Tunney last spring", that "A 
small staff is being assembled", and that "A computerized list of 
volunteers and their skills is being put together . " With regard 
to finances, the account noted that "Concerts are planned to 
raise more money." At least one "jarring" note was, however, 
struck by Democratic National Committee member Jess Delgado of 
San Jose, who "was on a panel to advise the CED on how to reach 
into the minority communities." Delgado reportedly "urged his 
listeners - 'in your nice patched jeans' - to stop making a cult 
of poverty, 'pretending to be poor because it's more fun than 
spending daddy's money.'" The article had noted "the predominate- 
ly young, white" makeup of the assembly. Hayden's animus against 
what he sees as "unbridled corporate power" was even more apparent 
in this account: 

"Our strategy is to make the issue of corporate 
power a legitimate and a real one, not just in movies 
like 'Network' or 'Marathon Man' but in the political 
arena, " he said. 

"Politicians tiptoe around the question. The 
tiptoing [sic] has to end. The fact is that unemployment, 
inflation, corruption, pollution all trace back to 
unbridled corporate power . " 

"There is silence in government about this question. 
There is silence in the Carter administration. There 
is silence everywhere, with very few exceptions, largely 
because the people who are in office are creatures of 
the corporate world or have been bought by the corporate 
world or are dependent on the corporate world for 
re-election." 



36 



JANE FONDA AND CED FUND-RAISING 

Fonda's activities in raising funds for CED have been varied 
and sustained. The San Francisco Examiner for May 26, 1977, for 
example, reported that her "recent hectic one-day' visit to The 
City included not only the women's brunch but appearances at 
Delancy Street and Oilcan Harry's, and ended with a 10 p.m. plane . 
to Colorado to begin her next film." The San Diego Union for 
April 4, 1977, noted an appearance by Hayden and Fonda "at a 
$10-a-person fund-raising party for [San Francisco Sheriff Richard] 
Hongisto and the Campaign for Economic Democracy" that was "held 
at the home of Hedy and Ortega St. John at 1865 Sefton Place, one 
of the biggest mansions on Point Loma." While Hayden described 
CED ' s aims as " ' to lay the focus on unbridled corporate power ' 
and to look ' for ways to bring the giant global corporations 
under the rule of law'", when asked about the possible irony of 
CED's holding such an event in a mansion, "Hayden quipped in 
reply: 'Those of our enemies who want us to be principled, 
really mean they want us to be poor . ' " 

On another occasion, as reported in the Nay 1980 issue of 
Mother Jones , "At "a fundraiser for the Campaign for Economic 
Democracy in Los Angeles recently, one page of Jane Fonda's FBI 
file was auctioned off to the highest bidder." There is even an 
exercise salon, Workout, in Beverly Hills, California, opened by 
Fonda, according to an article in the September 16, 1979, edition 
of the Philadelphia Inquirer , "in a small, converted office 
building" where, for "fees ranging from $4.50 to $6 a class," 
customers may engage in such activities as "-jazz dancing, ballet, 
disco, advanced disco (taught by one of the people who taught 
John Travolta) and spot reducing." The Inquirer account reported 
that some "of the profits from the salon will go to the Campaign 
for Economic Democracy" and added that "Indeed, one reason she 
set up the salon was to give CED, which is sending its cochairmen 
on a nationwide speaking tour in a few weeks, a new source of 
income." That this is one of the shrewder devices used by Fonda 
in behalf of CED's financial needs is indicated by a statement 
attributed to one of the salon's customers, a woman who "comes to 
the salon because her favorite instructor has joined the Workout 
staff." The customer was quoted as saying that her husband is "a 
conservative and he's having a fit. Myself, I have mixed 
emotions... I think a lot of the people are here because it's Jane 
Fonda, not because of the program. But the exercise is wonderful." 

Such a sentiment is, of course, eloquent testimony to the 
pulling power of so-called stars, a pulling power of which Hayden 
is obviously fully aware. The Oakland Tribune , for example, 
reported on May 13, 1977, that Superior Court Judge Lionel Wilson 
was to be the beneficiary of a "$25-a-person party in the Beverly 
Hills home of TV comedian Redd Foxx" and that "About 200 are 
expected." According to this account, "The invitations, which 
incidentally identified the judge as a Democratic candidate in a 
municipal election which by law is nonpartisan, " carried the 
names of such celebrities as O.J. Simpson, Henry Fonda, Roosevelt 



37 



Grier, Denise Nicholas, Lieutenant Governor Mervyn Dymally, 
Assemblyman Willie Brown, Helen Reddy, Jeff Wald, and Burt Pine, 
in addition to Tom Hayden and Jane Fonda. Similarly, the Tribune 
for June 3, 1979, reported: 

"Of course, we depend on our friends," Hayden 
says. "The 'names' make up a substantial amount of our 
budget." 

He cited a concert in Oakland by the Grateful Dead 
for the CED's occupational health program, and another 
CED spokesman described a recent fashion show in Los 
Angeles that grossed $25,000 by using such names as 
Cher Bono, [Jon] Voight, [Jane] Fonda, Valerie Harper, 
Tina Louise, Susan St. James and Robin Williams. 

The February 1978 CED NEWS carried an advertisement for a 
"CED CELEBRITY AUCTION" to be held in Hollywood on April 2, 1978. 
For an admission charge of $10, one could bid on the "Fur hat 
worn by Jane Fonda in 'Julia'" or "A day on the set with" John 
Travolta and Lily Tomlin, Mike Farrell, Ed Asner, or Ralph Waite. 
Another item up for bid was to be an "Original oil painting by 
Henry Fonda." And the May 11, 1979, issue of California Apparel 
News published another CED advertisement, this time for a "CELE- 
BRITY FASHION SHOW" scheduled for May 19, 1979, at the Beverly 
Wilshire Hotel at a charge of "$50 per person - $450 per table." 
The hosts were to be Jane Fonda and Jon Voight, and "Participating 
designers and stores" listed included Alandales, Alva, Carlos 
Arias, Apropos, Bis by Leon, Camp Beverly Hills, Dinallo, Norma 
Fink for Theodore, Fiorucci, Fragments, Rudi Gernreich, Holly's 
Harp, L.A.X. by Mary Kay Stolz, Bob Mackie, Madonna Man, Maxfield 
Bleu, James Reva Concepts, Mimi Fayazi, Right Bank Clothing 
Company, Cara Robin, Saint-Tropez West, Savage Space, Phyllis 
Sues, Sun Le Sun, Surya, and Timmy Woods. (It is possible that 
this function was the "recent fashion show" mentioned in the June 
3, 1979, Oakland Tribune , cited in the preceding paragraph.) 

Such events, of course, may occasionally have their pitfalls. 
The February/March 1980 issue of Mother Jones noted a "recent 
fashion show fundraiser in Los' Angeles, for which Fonda called 
out everyone she ever knew, "■ and reported that "Hayden ended the 
event and all good feelings with a brief speech, saying: 'The 
Establishment has always used fashion as a decadent diversion 
from the real issues . • " 

A problem of another sort developed during a September 26, 
1979, "evening with Jane Fonda and Tom Hayden" in Washington, 
D.C., in behalf of the Coalition for a New Foreign and Military 
Policy.* Invitations to this event bore the names of some sixteen 



*See Heritage Foundation Institution Analysis No. 12 , "The Anti-Defense 
Lobby: Part III, Coalition for a New Foreign and Military Policy," December 
1979. 



38 



individuals, among them Representative Ronald V.. Dellums, Isabel 
Letelier, Representative Parren J. Mitchell, Stewart Mott, and 
President William Winpisinger of the International Association of 
Machinists and Aerospace Workers. The invitation quoted Hayden 
and Fonda as endorsing the CNFMP for "providing a critical link 
in making" needed "connections" between the "struggle for economic 
and social justice here at home" and "the basic assumptions of 
U.S. foreign policy." While the 200 or so attendees were enjoying 
the occasion inside, another group of an estimated 50 protesters 
demonstrated peacefully outside. The protesters included Vietna- 
mese refugees and called themselves the Committee to Explain the 
Fonda Syndrome, an apparent allusion to the popular Jane Fonda 
film The China Syndrome ♦ According to an account in the September 
27, 1979, edition of the Washington Post , one protestor, "Kgiet 
pang, who left Vietnam by boat in April, 1975, said, 'Our argument 
is that she didn't want to support the boat people. We are here 
to tell the truth. 1 " Hayden 's rejoinder was quoted in the Septem- 
ber 30, 1979, edition of the Antioch Ledger , which reported that 
"inside at the garden party, Tom Hayden railed against corporate 
fat cats and corrupt oil dictators. 'We have been supporting the 
yacht people ... it ' s the yacht people who caused the boat people, 1 
he said." 



YOUTH PROJECT AND IPS 

CED has also received funds from organizations tied to the 
leftist "movement" in general and to the Institute for Policy 
Studies in particular. The 1978 annual report of the Youth 
Project, an overtly leftist apparatus that has received funds 
from entities that also fund IPS, as well as from church groups 
and government agencies like the National Endowment for the Arts 
and Humanities and ACTION, reported that "Youth Project funds 
enabled the. San Diego chapter [of CED] to hire its first staff 
members." The connection to IPS, which is explored in greater 
detail in Part II of the present study, was shown by a financial 
report for the Second California Conference on Alternative Public 
Policy, held in Santa Barbara, California, on February 18-20, 
1977. The March 1977 Campaigner for Economic Democracy reported 
that "The major group organizing the Conference was the California 
Campaign for Economic Democracy, " while basic position papers 
published in "a 150-page set of Working Papers on Economic Demo - 
cracy " were prepared at CED request by the IPS-affiliated Califor- 
nia Public Policy Center, which also "has agreed to serve as a 
clearing-house for information about the Issue Task-Forces." The 
financial report issued subsequent to this conference revealed 
that "Initial Continuations Support has come from the Foundation 
For National Progress in the form of a $2,000.00 Grant." 

CED AND GOVERNMENT FUNDS 

One final source of funds is of particular importance, both 
because of its relation to the American taxpayer and because of 



39 



its having been the occasion for the most serious allegations of 
impropriety, * allegations made in some cases in publications 
clearly on the left and therefore, in the nature of things, 
presumably not altogether hostile to CED ' s aims . In any such 
movement, as observed by John P. Roche in a column on CED published 
in the November 7, 1979, edition of the Detroit News , "what has 
to be understood is the potential for invisible payroll swapping.". 
If recently-published accounts are accurate, it would appear that 
such may be the case with the CED apparatus. 

It has, for example, been reported that the Center for New 
Corporate Priorities, a Santa Monica, California, organization, 
was the recipient of a 1978 grant of $126,000 in Comprehensive 
Employment and Training Act (CETA) funds, ostensibly for job 
training. The Center is run by Ruth Yannatta Goldway, a member 
of the Santa Monica City Council who was elected with CED support; 
her salary as head of the Center has been paid with money from 
the CETA grant. It appears that the Center was able to place 
some 57 CETA trainees with several community groups, most of them 
CED-oriented, with the result that the Inspector General's office 
within the U.S. Department of Labor has reportedly determined 
there is "prosecutive merit" in allegations that CETA funds have 
been used to subsidize CED-connected political activity. 

Such allegations are far from new. The October 29, 1979, 
issue of Barron ' s reported that "Organizations with CED alliances 
(e.g., the Laurel Springs Educational Center, a training institute 
for community ' organizers ' ) have found a place at the public 
trough via CETA or VISTA money." Similarly, Joel Kotkin's July 
5, 1979, Washington Post article noted that "Reports have circula- 
ted widely that some funds from the federal Comprehensive Employ- 
ment and Training Act (CETA) program are going to CED members and 
their allies working in political campaigns . " Kotkin did also 
note that 



"An early charge of possible impropriety surfaced in connection with -a 
$400,000 contribution made by Jane Fonda to Hayden's 1976 campaign. Supporters 
of Senator John Tunney filed a complaint with the Federal Election Commission 
claiming that Fonda had violated a section of the federal election statute 
limiting contributions by individuals to a maximum of $1,000 per candidate. 
As reported in the June 30, 1977, edition of the San Jose Mercury , the FEC, 
"reversing an earlier finding," determined that Fonda's contribution was 
legal, citing California's community property law, under which the combined 
assets of a married couple are regarded as held in common by both husband and 
wife. "Thus, the [FEC] counsel ruled, the $400,000 could be considered to 
belong to Hayden as much as to his wife, and there is no legal limit on how 
much a candidate can spend on his own behalf." The size of Fonda's contribu- 
tion is of some interest when one considers the previously-cited San Francisco 
Examiner article of January 17, 1977, which mentioned Hayden's condemnation of 
corporations for making large campaign contributions, a practice reportedly 
excoriated by Hayden as "a forbidden issue never discussed in campaigns." 



40 



When confronted with statements by former CETA 
workers that one local program was serving as a "tax- > 
free political front" for CED-backed candidates and 
rent-control initiatives in Santa Monica, Hayden denied 
any direct CED involvement, but admitted that he has "a 
lot of nightmares about this kind of thing." 

"A lot of people on the left have been in opposition 
to the law for so long, taking drugs, opposing the 
government, that they do tend to take [on] an outlaw- 
type mentality, " he said. 

The most detailed bill of particulars, however, has come 
from the political left in the form of an article by Bill Wallace 
in the October 4-17, 1979, issue of an aggressively radical 
"movement" tabloid known as the Berkeley Barb , which charged that 
"a six-month long Barb investigation has uncovered startling 
evidence that Hayden is systematically engaging in building a 
personal, political machine at the expense of the alternative 
energy movement. " In spite of the well-publicized speaking tour 
by Hayden and Fonda "in opposition to nuclear power and in support 
of alternative energy," the Barb article charged, "Hayden 's 
tactics — which include an extensive, political patronage system, 
highly questionable use of state and federal funds, and an extreme- 
ly opportunistic approach to energy problems — have led to 
serious divisions within the alternative energy movement and have 
infuriated many long-time activists . " Despite this article ' s 
length, its detail and the seriousness of its allegations are 
such that the balance of the piece merits quotation in full at 
this point: 

Although Hayden and Fonda have drawn heavy fire 
from conservatives in California, his popularity among 
leftists is now in jeopardy. "Hayden is a sacred cow 
on the left," one full-time solar activist told us. 
"He's just exploiting solar as an issue. It's the same 
whether Hayden and CED (the Campaign for Economic 
Democracy which is Hayden 's political organization) are 
in housing, tenants' rights, or their most recent 
crusade against 'the corporate causes of cancer. 1 
They'll rip off all the action no matter what the issue 
is. They come in with the Jane Fonda dog and pony 
show, rip off all the money and you never see them 
again." 

The cause of this hostility seems to be Hayden 's 
own tactics. Our investigation has uncovered that the 
Hayden political machine has: 

* Channeled federal dollars from Western SUN (a 
federal solar energy project) into community action 
groups which are affiliated with Hayden 's CED. At the 
same time legitimate solar groups that are not affiliated 
with CED are unable to obtain funding from Westen [sic] 
SUN. 



41 



* Put CED members on the payroll of Western SUN. 
Positions in the federal program tend to be filled not 
on the basis of knowledge or ability in the field of 
solar power, but on the basis of classic political 
patronage . 

* Obtained federal funding from the CETA (Compre- 
hensive Employment and Training Act) program to pay 
wages to CED members for doing work for CED. The 
taxpayer- funded work involved little more than political 
organizing for the Hayden organization. 

* Used a Santa Monica crime control program 
called Communitas, which has a quarter million dollars 
in federal grants, to promote rent control and other 
political projects dear to CED's heart, but completely 
unconnected with crime control. 

Ironically, we found that the strongest critics of 
Hayden* s use of state and federal tax money to build up 
his own personal political corps were his ostensible 
allies on the left. Consistently during our investiga- 
tion, the sources we contacted who were most bitter 
about Hayden 's tax-subsidies for the Campaign for 
Economic Democracy were environmentalists and solar 
power advocates who feared that his activities would 
harm the solar energy and anti-nuclear movements. 

"It's just a big solar pork barrel," fumed Mark 
Vanderveldon, a lobbyist for the Friends of the Earth 
in Sacramento. Vanderveldon, who is himself a member 
of CED, added that, "Tom would be the first one to 
scream if some right-wing Republican put all of his 
cronies on the payroll of a federally- funded program, 
then used them to do precinct work for his own re- 
election campaign. He would say that it was a conflict 
of interest and he would be right." 

One California government official who has worked 
with Hayden on a variety of projects noted, "You've got 
to ask yourself some questions about what Tom's doing, 
and I'm not talking about political questions either. 
It's a matter of whether state and federal tax-payers 
ought to be footing the bill for building up Hayden 's 
personal political cadres . " 

Most of Hayden *s tax-supported operations revolve 
around the solar power movement, a movement which he 
has all but expropriated for his own political ends . 
The lynchpin [sic] of the entire program is a little- 
known outfit called Western SUN, a project of the U.S. 
Department of Energy, whose purpose is to "further the 
awareness and commercialization of solar energy" in 
thirteen western states according to the official 
description. 



42 



The California branch of Western SUN is Hayden's 
baby, and by -all indications, he's the most active 
state Western SUN director in all the 13 states covered 
by the program. Hayden's administrative budget for 
Western SUN in its first year of operation was $82,000 - 
and that was really nothing more than start-up money. 
Apparently, Tom felt that the best way he could spend 
the money was by putting as many CED political allies 
as possible on Western SUN's payroll. 

The Barb investigation has revealed that Larry 
Levin, Western SUN's field representative, is a CED 
member and a former PR man for Hayden's unsuccessful 
1976 U.S. Senate race. 

Judy Corbett, another Western SUN paid consultant 
has allowed her showcase solar-powered home in Davis to 
be used for CED fundraiser house-parties. Kit Bricca, 
of Santa Clara County, and Keith Bray, in Sacramento, 
are both paid consultants to Western SUN and both are 
CED members. 

"Many of the people who have been hired and much 
of the subcontracting through Western SUN that has gone 
on has been to CED members or people with a strong 
allegiance to Tom," complains Allen Mirviss, a lobbyist 
for SUNRAE, a solar energy group headquartered in Santa 
Barbara. 

Another source says, "Some of them (Western SUN's 
staffers and consultants) don't necessarily have that 
much solar expertise, but they're basically people that 
Tom feels will not stab him in the back. Tom has 
always been pretty straightforward, privately, that he 
comes first and CED comes first — that the issues are 
there to be used to organize around and it's not the 
issues themselves that are important." 

Another environmentalist who declined to be quoted 
by name was more blunt: "Tom Hayden is the issue 
Piranha of the Left!" 

Hayden's blatant oportunism [sic] has been under- 
scored by his recent leap onto the anti-nuke bandwagon. 
One source intimately familiar with Hayden's operation 
told us, "Before Three Mile Island, Hayden had almost 
lost interest in the nuclear issue. He just jumped on 
the bandwagon again when he saw that it was getting 
hot. How long will he really be interested in solar or 
cancer or rent control, or any issue? Let's face it, 
the guy's an opportunist and always has been. The only 
difference is that now he has credibility and money — 
and these state and federal offices he holds are giving 
him more of both." 



43 



Even more serious than this bandwagon mentality is 
the fact that after Hayden's organizations have sopped 
up all the available private and public funds available 
for an issue or problem, he moves his attention elsewhere, 
long before any real, concrete solutions are worked 
out. "Hayden never proposes a follow- through. He has 
no sense of a coherent approach to social problems. 
He ' s too busy looking for the next chic issue to capital- 
ize on, " one critic affirmed. 

In addition to hiring CED cronies to work on 
Western SUN's staff, Hayden and his allies have also 
been careful to see that federal funds from the program 
have been channeled, almost exclusively, into "community 
action" programs and groups affiliated with CED. 

For example, no sooner had Berkeley Citizen's 
Action (BCA) succeeded in winning de facto control of 
the Berkeley City Council, last April, than' members of 
the heavily CED-dominated group touched bases with. 
Western SUN field representative Larry Levin in an 
effort to win a federal "planning grant" for their own 
municipal solar program. In addition, Western SUN 
staffer Levin has met with CED-backed office-holders in 
Berkeley and Oakland to discuss implementating [sic] a 
solar power development program oriented toward creating 
solar industry jobs for minority grop [sic] members, 
and has spoken to local CED activists as part of a 
series of lectures called "The Battle Against Corporate 
Power" in Berkeley's La Pena restaurant. 

Perhaps the most telling argument that CED-related 
groups have a virtual lock on Western SUN money, however, 
is the fact that other solar-power groups have been 
largely frozen out as recipients of Western SUN's 
largesse. According to members of a variety of solar 
groups contacted by the Barb , their pleas* for federal 
funds from Western SUN have been either ignored or 
turned down. 

SUNRAE's Alan [sic] Mirviss, for example, informed 
us that Western SUN had simply shrugged off a request 
for money to be used in researching the powerful Califor- 
nia swimming pool industry, one of the strongest oppo- 
nents of legislation promoting solar energy in the 
entire state. 

"We tried to tell them that unless we knew more 
about these people and their lobbying machinery, our 
success at passing solar power bills would be severely 
limited," Mirviss explained. "They just didn't seem to 
understand the significance." 



44 



"Look, it's very obvious that all you have to do 
to get money out of Western SUN is to be tied up with 
Hayden somehow, " one solar energy source who requested 
anonymity told us. "If you're with CED, you can get 
what you want out of Western SUN in the way of support. 
If you're not, you can just go fish." 

Western SUN isn't the only federally- funded program 
which Hayden and his cohorts have apparently used to 
build up CED. A little- known crime prevention and safe 
streets program in Santa Monica called Communitas has 
also been doing yeoman service for Hayden 's political 
group — courtesy of $223,000 in federal Law Enforcement 
Assistance Administration grants. 

Communitas had its origin in a group called Ocean 
Park Projects, a subsidiary of a left-leaning religious 
group in the Ocean Park District of Santa Monica headed 
by the Rev. Jim Conn, a Hayden ally. 

In April, 1978, Conn drafted an application to 
LEAA asking for $223,274 to set up "a network of safe 
houses, block clubs, and neighborhood councils designed 
to provide comprehensive crime prevention services at 
the grass-roots level." According to Conn 1 s- proposal, 
the Communitas program was intended to consist of 
"target hardening" (the installation of deadbolt locks, 
window j ams and security devices ) , setting up neighbor- 
hood alert systems, and a host of other efforts aimed 
at preventing crime and educating the public — particu- 
larly women, the elderly and minority group members — 
how to protect themselves from burglars, muggers, 
rapists and other street criminals. 

Among the "crime prevention" projects which Santa 
Monica sources say Communitas has engaged in was block 
organizing and precinct work for last year's Santa 
Monica rent control initiative. Several sources contac-. 
ted by the Barb noted that Communitas had co-hosted 
"information nights" on the CED-backed rent control 
measure with Santa Monicas [sic] for Renters Rights, a 
CED subsidiary in the area headed by Ruth Yannata [sic] 
and Bill Jennings. Both Jennings and Yannatta are CED 
members serving on the Santa Monica City Council. Not 
coincidentally, the Treasurer of Santa Monicans for 
Renters' Rights is none other than Jim Conn, the founder 
and nominal head of Communitas. With Communitas 1 help, 
CED managed to pass its rent measure and elect a hand- 
picked slate of candidates to the rent control board. 

Most recently, Hayden has come under fire for his 
involvement in the Southwest Regional Border Commission, 
a state- funded agency which is tasked with helping 
communities near the Mexican/U.S. border work out 



45 



common problems. Governor Jerry Brown nominated Hayden 
to head the Commission in California, and Hayden began 
packing the Commission's payroll with CED members, 
chief among them his political ally Richard Ybarra. 

Critical sources contacted by the. Barb admit that 
the size of Hayden 's tax-subsidized political empire is 
small — amounting to probably no more than a few 
hundred thousand tax dollars to date — and they are 
generally charitable about his motives in hiring trusted 
friends and associates to work with him in these projects 
As one of them grudgingly put it, "If I were in Tom's 
shoes , I suppose I ' d probably be tempted to do the same 
thing myself. I sure wouldn't want to hire someone I 
knew nothing about . " 

Nevertheless, many harbor suspicions that Hayden 
is simply using his access to tax dollars to support 
his own personal political ambitions, and they note 
that many of the people that he has hired appear to be 
operating in areas for which they are ill -equip ted 
[sic] . 

Hayden 's response to these devastating charges? 
It's anybody's guess. Despite repeated calls to Hayden f s 
Los Angeles CED headquarters and urgent messages to 
both Hayden and his public relations man, Sam Hearst 
[Hurst] , neither have returned our calls — and neither 
seem likely to. 

Larry Levin, Hayden *s right-hand man at Western 
SUN, uncategorically denied that his organization was 
being used to channel money into CED projects, but 
admitted that many of the people who have been hired 
under Western SUN contracts are CED members; and that 
several Western SUN grants had been given to community 
action coalitions in which CED plays a major role. 

"We've bent over backward to be as scrupulous as 
we could in who we've hired and what groups we've 
supported," Levin said. "We've always known that if 
there was the slightest bit of question about the 
propriety of what we were doing, that there would be 
charges levelled at us just like the ones you've been 
asking about." 

Nevertheless, the charges are there — and they 
won't simply disappear. Indeed, the Barb has learned 
that various state and federal officials are already 
probing Hayden 's use of tax money, and there may be a 
good deal of rough sledding ahead for the former student 
radical . 



46 



"This is really a no-win situation for the left, " 
one source confided. "If there were irregularis es and 
Toiu winds up getting zapped, the fallout will go to 
discredit the movements he's been most closely identified 
with — anti-nuke, solar power, the whole schmear. 
Tom's been out in front on all of these issues and he's 
practically managed to become identified as "Mr. Solar 
Power,' and 'Mr. Anti -Nuclear. ' If he takes a fall, 
all of us people who've been working in the background 
are going to go down with him. That's part of the 
reason why not many people are talking about it. It's 
a bad scene [emphasis and punctuation as in original]." 

CONCLUSION 

The foregoing data indicate that the Campaign for Economic 
Democracy is an apparatus centered largely around the ideological 
predilections and political aspirations of Thomas E. Hay den, one 
of the preeminent activists on the radical left in the United 
States. From its beginnings in Hayden's abortive 1976 primary 
campaign for a seat in the U.S. Senate, CED has grown fairly 
steadily into a well-financed statewide instrumentality with 
clearly defined radical goals tempered with a realistic understand- 
ing of the need for what Hayden's wife, Jane Fonda, has called "a 
political power base." CED's efforts, geared to effective exploita- 
tion of popular economic and other issues, have engendered consider- 
able controversy, some of the most hostile assessments having 
come from the political left, possibly as a result of the sort of 
sectarianism and rivalry for power that historically has plagued 
the left in this country. 

To the degree that CED has achieved acceptance in some 
quarters within the political establishment in California, it 
must be taken seriously; to underestimate the potential of a 
movement that numbers among its members and supporters a former 
Lieutenant Governor of California and a prominent member of the 
U.S. House of Representatives is to run the entirely needless: 
risk of laying oneself open to an unpleasantly rude awakening a 
few years hence. This is even- more the case when a movement 
enjoys, as CED does, close ties to a well-organized nationwide 
apparatus of obviously radical complexion, an aspect of the 
organization that, as mentioned previously, is explored in detail 
in the second part of this study. For the present, perhaps the 
best way to summarize what CED stands for is simply to cite one 
of the organization's own promotional brochures: 

Okay. 

We all know about the stagnant thing. in our midst. 

And we've all fallen in — in one way or another. 



47 



We suffer its racism and sexism and joblessness and 
wars and inflation and its sugar-coated poisonings of 
our minds and bodies. 

It has a name, this source of our ills. 

An X-rated word — rarely spoken in polite company. Or 
in schools. Or in the media. Or in the workplace, 
especially. 

We think it's time to name — and publicly challenge 
the foul thing. 

Out loud. 

The stink in our midst is called Corporate Capitalism — 
and who says we have to live with it forever? 

Enough's enough. 



William T. Poole 
Policy Analyst 



The foregoing analysis is one in a series published by The Heritage Foundation. 
This publication is intended as a background analysis of an important organiza- 
tion which affects public policy. Any views expressed are those of the author 
and do not necessarily reflect those of The Heritage Foundation. Any comments 
should be addressed to the Director of Research at The Heritage Foundation, 
513 C Street, N.E., Washington, D.C. 20002. 



13 

September 1980 



CAMPAIGN FOR ECONOMIC DEMOCRACY: PART I 

THE NEW LEFT IN POLITICS 



(Executive Summary) 

The Campaign for Economic Democracy is a California-based 
apparatus with national ties, particularly to organizations that 
function as parts of the nationwide network created and maintained 
by the Institute for Policy Studies, "the far-left radical 'think 
tank' in Washington, D.C." CED evolved directly from the unsuccess- 
ful 1976 California campaign of Thomas E. Hayden, one of the 
preeminent radical leaders .of the 1960s, for the United States 
Senate; and several of CED's principal activists are also veterans 
of the Hayden. campaign and of Students for a Democratic Society, 
a militantly leftist organization in which Hayden played a pivotal 
role both as founder and as principal author of its basic manifesto, 
the "Fort Huron Statement." With an estimated 8,000 members 
throughout the state of California and a claimed core of 400 
activists, CED operates' with a paid staff of 21 people, a steering 
committee of 40 members and 40 alternate members, and an executive 
committee of eight members; Hayden chairs both the steering and 
executive committees and has been chairman of CED since its 
inception. In March 1977, the' Campaign claimed to have IS chapters 
in California; the most recent estimate places the number at 30. 

Hayden' s ambitions are evident in his statement that "We're 
going to take over. . . .The next big generation will be those who 
came to political life during Vietnam, my generation. The country 
will be under our influence for a long time to come." It is, in 
fact, widely felt that CED exists in large measure to serve as an 
instrumentality for the achievement of Hayden 's political goals; 
it is certainly true that his involvement and thinking have been 
central to CED's operation, just as the efforts of his wife, 
radical actress Jane Fonda, have been central to the organization's 
fund-raising programs. These programs, which support a budget 
currently estimated at $300,000 per annum, have included direct- 
mail appeals, "door-to-door soliciting, speaker's honorariums,